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Marshall reads the British Governors reply to Laxmibais letter. The Governor reduces the loan amount. The whole court rejoices with Gangadhar. Gangadhar tells Laxmibai that he is pleased that the Governor has reduced the loan and that the whole court is waiting to praise her. Laxmibai tells Gangadhar that she wants him as her husband for a day, not as a king. Laxmibai is honoured in the court. Gangadhar also reinstates Bhopatkar. He then announces a day off for the court as he wants to spend it as the husband of Queen Laxmibai. Laxmibai asks Motibai about the likes and dislikes of Gangadhar Rao. Motibai tells Laxmibai that Gangadhar loves roses and eating Paan (betel leaf). It is announced that Samar Singh will be publically hanged. Gangadhar is amazed to know that Laxmibai is an expert in sword fighting. Gangadhar and Laxmibai are happy in each others company. Meanwhile, Marshall leads Samar Singh to be hanged publically.
