In which the children gather on a hilltop to welcome back Peter, who shares news of a heartfelt family reconciliation and the curious reasoning behind a bountiful clover crop, while the Story Girl returns with tales from a charming old garden steeped in memory and lingering love. As evening deepens, they listen with wistful fascination to the story of a faithful devotion that outlasts even time and death, and chatter ensues about romance, sentiment, and the charms of their acquaintance, Beautiful Alice.