Nelson informs Hamilton that he plans to create religious schisms in Jhansi. At Ghaus Khan's request, Laxmi Bai allows a Shia Muslim religious procession on Jhansi's soil. In her dear royal chamber ransacked by the British, Laxmi Bai finds a sketch of hers with Gangadhar. Nelson sees Rose with Laxmi Bai's sketch and puts her under house arrest. In the palace, Laxmi Bai remembers her fond time with Gangadhar and British betrayal of Jhansi. She tearfully burns Gangadhar's attire worn by Nelson.