Dona Rodriguez goes into Quixote’s room and tells him about her daughter that is in love with a farmer’s son and he refuses to marry her, and the Duke won’t force him to because the farmer is wealthy and he doesn’t want to lose him. Then someone goes into Quixote’s room and hits and pinches Dona Rodriguez and Quixote.
Sancho as governor comes across two illegal activities then sees a girl dressed as a boy. The girl explains that her father keeps her locked up and she wanted to see the town so she switched clothes with her brother who was caught. Sancho takes them both home and tells them to be more careful.
It turns out as Cervantes states, the Duchess and Altisidora were the ones who ran into Quixote’s room and pinched and slapped them. After this the Duchess sends Teresa Panza, Sancho wife, a letter informing her that Sancho has been made governor and she shows the Priest and Barber.
Sancho comes to a bridge where a man is set to hang for lying but Sancho frees him. He then receives a letter from Quixote which explains more about governing and that Quixote is going to do something that will displease the Duke and Duchess. Sancho writes a letter back telling him not to do it because he wants to remain governor. After all this Sancho writes some laws about importing wine, lowering the price of footwear, make the wages of servants fair, and forbid blind people not to sing about miracles unless they are true.
Quixote wants to go to the jousting tournament at Saragossa but before he can leave Dona Rodriguez and her daughter beg him to avenge the wrongs of the farmer’s son. The Duke accepts Quixote’s challenge of a dual. Teresa Panza’s letters also arrive, one for the Duchess and one for Sancho, both of which are read and laughed at by the Duke and Duchess along with the others.
Sancho is told of an impending attack on the isle and his people force him to lead the charge. However Sancho falls to the ground and gets trampled by his own people then decides he was never meant to lead and rides off for the Duke to tell him of his decision.
The Duke informs Quixote that the farmers son has fled the country and that his footman, Tosilos, will take his place. As Sancho heads towards the castle he comes across one of his old neighbors who is an exiled moor. Sancho tells him of his govern ship and tells him the only thing he learned is he cannot govern anything but a herd of cattle.
Sancho falls into a pit and cannot get out until he is found by Don Quixote who gets him out and returns him to the castle. Once there Sancho tells the Duke of his decision and he responds by giving him a better fitting job at the castle.
On the day of the dual the Duke makes several precautions to make sure that no one is injured. However when Tosilos sees Dona Rodriguez’ daughter he falls in love and proposes to her. Quixote thinks it is the work of an evil enchanter and the Duke locks Tosilos up.
Don Quixote and Sancho get ready and once they almost leave Altisidora pretends to be really upset that Quixote has not fallen in love with her and claims that he has stolen three handkerchiefs and a garter and she utters a curse on him.
Once on the road Quixote finds himself entangled by some bird snares and two shepherdesses come and release him to whom he vows to stand in the middle of the road and proclaim their beauty only behind Dulcinea. Standing in the middle of the road ends up being a bad decision because a herd of bulls come running down it and Quixote and Sancho are crushed by them.
Quixote and Sancho stop at an inn after the bull incident and find two men with a counterfeit copy of the first sequel to Don Quixote. The book reads that Quixote went to Saragossa for a jousting tournament so Quixote instead decides to go to Barcelona.
Quixote, tired of waiting for Dulcinea’s disenchantment decides to whip Sancho himself. Sancho then knocks Quixote down and makes him swear to not whip…