Raghunath and Tatya Tope release Ghaus Khan from prison. Back at the playground, the spectators laud Ladai Sarkar when they see her approaching the finishing line. However, her happiness is short-lived when she hears Laxmibai tell her that she was carrying the flag of Jhansi! Laxmibai emerges as the winner and she posts the flags of Jhansi and Orchha on the finishing line. She tells the King of Datia that her motive was to have a united India to drive the British away. Hamilton arrives then and informs Ladai Sarkar that Tatya Tope had entered the palace of Orchha with his battalion. Ladai Sarkar is enraged with Laxmibai for betraying Orchha once again and declares war. Laxmibai tries to explain to Hamilton that the British want to create internal enmity, and urges Ladai Sarkar to join forces against them.