Miss Clack, with great admiration, describes Godfrey's perfect entrance and his perfect humility in describing the attack upon him. Rachel comes in and asks Godfrey to describe the attack and becomes suspicious when he is reticent. Miss Clack is disapproving of Rachel's forthrightness.
Rachel questions Godfrey about his relation to Septimus Luker. Godfrey insists he doesn't know him. Rachel questions Godfrey about Luker's receipt for a "valuable gem," but Godfrey doesn't know what the gem was. Rachel questions Godfrey about gossip around the incident, and Godfrey reluctantly admits that people are saying that Luker's gem is the Moonstone and that Godfrey himself pawned it to Luker. Rachel, though still suspicious that Godfrey knows more of Luker than he admits, is frantic and insists on clearing Godfrey's name. Rachel dramatically explains that she knows for a fact that Godfrey is innocent and offers to sign a paper saying so for Godfrey to show around town.
Meanwhile, Lady Verinder becomes faint and asks Miss Clack to quietly assist her with her medicine so that Rachel cannot see. Several women come to the door to take Rachel to the flower-show. After she leaves, Godfrey burns the paper Rachel had written clearing his name, not wanting Rachel exposed to gossip. Godfrey leaves.
Miss Clack questions Lady Verinder about her health, and Lady Verinder admits that her health is not good. Lady Verinder asks Clack to return that afternoon to witness Lady Verinder signing her will. Miss Clack realizes that Lady Verinder is dying and keeping it secret from everyone.