Some important peeps show up for a dinner at Vidal's place.
Mercedes goes to "get more wood," but by the wood pile she passes her hand over her lantern four times, as if signaling to someone.
But then she sees a very dirty Ofelia coming home in the rain and takes her inside to her mother.
Carmen is telling a story about how her husband used to make uniforms for Vidal and they met when she went to work in the factory. Vidal plays the story off as a silly tale, perhaps embarrassed by his new wife's old social status.
Carmen is very upset with Ofelia. When she tells her that Ofelia disappointed Vidal, Ofelia smiles.
Then the fairy shows up and she heads back to the labyrinth.