And now Arline was quickly restored to the high position she had been born to; and as soon as the young girl had recovered from the strangeness of her new life, the proud and happy Count sent out invitations for a magnificent fête and ball, that he might introduce his lovely daughter to his friends in fitting style.
But on the night of the ball, Arline, dressed in richest garments, sat alone in one of the splendid salons of the castle, with a sad look upon her face; for she was thinking of her faithful lover, Thaddeus, and felt that she could never enjoy her new prosperity unless he shared it with her. The Count and his foppish nephew had just left her, at her own request; and as they went off to receive the first guests, she knew that Florestein, whom she greatly despised, was already petitioning her hand in marriage.
With a heavy sigh, her thoughts turned quickly to the free and happy past; and at that moment, the low window of the salon was suddenly opened, and Devilshoof entered from the grounds beyond. He begged her not to be alarmed, since he had but brought a message from his tribe, asking her to return to her old friends; and as he spoke, the window was opened again, and Thaddeus entered the room.
With a cry of joy, Arline rushed into her lover's arms, and when Thaddeus besought her to remember him sometimes, even amidst wealth and splendour, she declared that she cared naught for wealth and splendour unless he would love her still. As they stood there, folded in each other's arms, Count Arnheim's voice was heard as he conducted his guests towards the room; and Arline, fully aware that this was not the time to present her gipsy lover to her father, hastily thrust Thaddeus into a curtained recess, whilst Devilshoof escaped through the window.
In another moment Count Arnheim entered the salon with the early guests, and with a proud smile, took Arline by the hand, and introduced her to his noble friends.
Now, whilst Arline and Thaddeus had been rejoicing together, the gipsy queen had watched them without the window, with bitter rage and jealousy in her heart; for she still loved Thaddeus, and followed him wherever he went. She saw Arline hide him within the recess, and as the gaily-dressed guests afterwards trooped in, she quickly thought out a plan for revenging herself upon her rival. Opening the window, she softly entered the salon, and making her way to Count Arnheim, threw off her cloak, and declared that she had a message for him.
Greatly surprised at the appearance of this strange figure, the Count bade her speak on; and with a triumphant glance towards the now pale and trembling Arline, the gipsy queen cried: "The daughter you prize so fondly is deceiving you! She loves a gipsy of my tribe, and he is even now hidden in this room!"
She pointed to the recess as she spoke, and Count Arnheim, stepping forward, drew aside the curtain, and Thaddeus appeared before the eyes of the astonished guests.
Full of indignation and disappointment, the proud Count poured forth bitter reproaches upon the daughter he now felt to be unworthy of his love; and drawing his sword, he passionately bade Thaddeus depart ere he took his life.
The gipsy queen seized Thaddeus by the hand, and triumphantly tried to drag him away with her; but Arline ran to her lover's side, and turning towards the bewildered guests, begged them to leave her alone with her father. When the guests had all retired to the salon beyond, and only her father and lover remained, she fell on her knees and implored the Count to consent to her marriage with Thaddeus, whom she loved so dearly, declaring that she would rather die than live without him; but the Count only exclaimed the more against the disgrace to his name should his daughter wed an outcast gipsy.