Katniss is stunned. Likewise, the crowd is displeased to have a twelve-year-old girl chosen as the tribute.
Prim approaches the stage, but as she does, Katniss darts in front of her and volunteers to take her sister's place. Volunteers are allowed, but they don't usually come forward – seeing as how most District 12 tributes bite the dust in the Games.
Prim freaks out. Gale grabs her, allowing Katniss to take the stage.
The people of District 12 do not clap; instead, they are silent. They then give Katniss the three fingered salute of the district, a gesture rarely used, meaning thanks, admiration, and good-bye to a loved one.
Haymitch stumbles drunkenly onto the stage, yelling about the scene, and then falls off. The whole thing is caught on camera, of course.
Next up is the selection of the boy tribute, which turns out to be Peeta Mellark.
Katniss is shocked, though doesn't exactly explain why. Though he has two older brothers, no one volunteers for Peeta.
Flashback: Katniss then relates the story of her only encounter with Peeta. It was after her father died, when her mother was suffering from depression. Katniss was – as she is now – the sole bread winner, but was not old enough yet for the tesserae.
The family was starving – a not uncommon fate in District 12.
One evening Katniss is in the Hob to trade some baby clothes for food. Unsuccessful, she is wandering behind the shops when she smells the bread of the bakers'. Delicious.
Katniss lifts the trash can lid to scavenge, when the baker's wife appears out of nowhere to scream at her and shoo her away. She sees a little blond boy peering at her from behind his mother.
Hiding behind the pig pen, Katniss, sick and weak, slumps down defeated. Soon, though, the blond boy appears with two loaves of burned bread. Katniss notices a red welt on his face, probably from his mother. He throws a loaf of bread in her direction and returns inside.
Katniss runs home with the bread and eats the loaf with her family.
The next morning she realizes that the boy probably burned the loaves on purposes – so he could give them to her.
That day at school the boy does not acknowledge Katniss. She does, though, see in the schoolyard a dandelion and remembers her time in the woods with her father – and that there she can find food for her family.
End of flashback. Katniss tells us that Peeta has always reminded her of hope, and that she is thankful for what he did – but how can she thank him now that he is her enemy?