Laxmibai introduces Ganga to the people of Jhansi. The people are shocked to know this. Nelson refers to Ganga as the queen of Jhansi and taunts Laxmibai indirectly. He expresses his hope that the future queen will comply with the wishes of the British. Ganga imagines herself being hailed as the Queen of Jhansi. Jankibai taunts Ganga to stop imagining. Jankibai tells Ganga that Laxmibai is pregnant. Ganga wants to give the news to Laxmibai. Jankibai tells Ganga that her grandmother, Daima, is in captivity and advices her to do as Jankibai bids her. Jankibai takes Ganga to the dungeon where Daima is held captive. Daima tells Ganga to remember the favors bestowed by Laxmibai on them. She tells Ganga to tell the truth to Laxmibai about her pregnancy. Jankibai tempts Ganga with the opulence that she will miss if she speaks the truth. Ganga is caught in a dilemma.