Angeles; Luisa says that she knows a place where Ramon can never find her. Ramon orders the guards to shoot into the crowd. The people flee, leaving Inez and Ramon alone. She tells Ramon that his empire is crumbling around him and that soon his greed will consume him ("Bamboleo (Reprise)"). Ramon leaves in denial, but her words have a great effect on him. Diego tries to advise Garcia on how to express his love for Inez, but when she arrives, Garcia becomes embarrassed and runs off. Diego enquires about Luisa's whereabouts. Inez tells him and also admits that she understands that Diego loves Luisa. Diego, dressed as Zorro, finds the cave where Luisa is hiding. Luisa confesses her feelings to Zorro, and the two dance outside the cave together ("Serenade"). The dance ends with Diego kissing Luisa but then pulling away. Luisa asks him why he's so afraid of his feelings; outside the cave, Diego sadly confesses that he wants to be with Luisa but is afraid that he risks putting her life in danger ("A Love We'll Never Live"). The following day, Garcia tries to impress Inez ("One More Beer"). Ramon, still distressed by Inez's words, goes to confession; he soon notices the priest is actually Zorro, who is trying to find out where Ramon is keeping Don Alejandro. Ramon sets a trap for Zorro, but Zorro manages to escape. Luisa goes to the gypsy camp where Inez transforms her into a gypsy ("Djobi Djoba"). Ramon bursts in and arrests Luisa. Inez calls Garcia a coward because he does nothing to stop Ramon. Luisa is about to be executed by a firing squad when Zorro, accompanied by several other men dressed as Zorro, fights off the guards. Ramon puts a knife to Inez's throat and tries to make Zorro choose between Luisa and Inez, but Inez throws Ramon to the ground. She tells Ramon that the love between Zorro and Luisa is a love that he can never know. Ramon produces a pistol from his pocket and shoots Inez. A heartbroken Zorro surrenders and is dragged away by the guards as Ramon forces Luisa to agree to marry him. As Ramon leaves with Luisa, the gypsies discover Inez's body and mournfully carry her away. In his prison cell, Diego laments his failure to protect the people and blames himself for the suffering of the ones he loves ("Hope