
Rose presents Laxmi Bai to Nelson as her friend. Killing Nelson's aide, Tatya Tope and Raghunath don't find Laxmi Bai in the drum. Laxmi Bai reunites with the two. Captain Bheem seeks to visit Rampur to meet Mangal Pandey and orders a detour to Gwalior. He and his Indian moles kill the suspicious British officers. Due to a nearly dead Dunlop's scribbling on mud, Nelson assumes that Jhansi's treasury is in Rampur. Laxmi Bai's plot hoodwinks Nelson into thinking that she has it somewhere else.
Manu rushes out of the house straight to the akhada (gymnasium) on her horse early in the morning. Nana Saheb is yet to hone his skills, but Manu impresses one and all when she defeats Tatyaguru. The Peshwa has been exiled to Bithur by the English who are increasing their stranglehold over India. An incident at a religious function leaves Manu disturbed. Her father tries to make her understand that the Peshwa's insult was caused by the fear of the cruel English. The insult annoys Manu and when she witnesses the inhuman treatment of a stable hand by an Englishman, she punishes him with a whip. When Manu refuses to apologize, the Peshwa is forced to apologize to the Englishmen on Manu's behalf.
When Manu stubbornly refuses to apologize to Jeff, Vahini Saheb decides to teach her a lesson. Vahini Saheb orders Manu to memorize 25 Shlokas (verses) by evening or else she will have to face punishment. Moropant requests Vahini Saheb to forgive Manu. But to his disappointment, she starts insulting him, discussing his background and the favors he received from Peshwa. Manu couldn't tolerate this and argues with Vahini Saheb that she cannot insult her father because he has done nothing wrong. Manu then leaves Vahini Saheb speechless by narrating all the Shlokas along with the translation. Then Peshwa walks in and forgives Manu. Later, Manu agrees to apologize to Jeff in presence of everyone only if he apologizes to Basu Kaka. Peshwa thinks it's fair, however Jeff doesn't agree. At night, an angry Vahini Saheb tells Moropant to get Manu married off and leave Bithur. Peshwa interrupts their conversation and announces that from now on Manu will live in the palace.