Anne invites Diana to a tea party, where she accidentally serves currant wine instead of raspberry cordial and gets Diana drunk. Mrs. Barry thinks it was intentional and forbids the girls from seeing each other again. Meanwhile, Miss Muriel Stacey becomes the new Avonlea schoolteacher. She wants Anne to join a special class for students who plan to take the entrance exam for Queen's Academy in Charlottetown. While Marilla is away, Diana arrives in a panic and tells Anne and Matthew that her little sister Minnie May is sick with croup. Anne treats the girl with ipecac and saves her life. Mrs. Barry is grateful and invites Anne to a Christmas ball in Carmody overnight. Anne sees Gilbert at the dance but is not willing to befriend him. She also meets Josephine Barry, who invites her and Diana to visit her mansion in Charlottetown, where Anne takes the Queen's entrance exam. Back in Avonlea, Anne and her friends recreate Alfred Tennyson's The Lady of Shalott, with Anne playing the role of Elaine the Lily Maid. While floating down the river, her boat springs a leak and sinks, leaving her helplessly clinging to a bridge. Gilbert comes rowing by and rescues her, then tells her they have tied for first place on the exam. He also asks her to forgive him for what he said before and insists he wants to be her friend, but Anne is still hesitant. Anne heads to Charlottetown to continue her education at Queen's and obtain a teacher's license. She finds out that the graduate who receives the highest mark in English literature wins the Avery scholarship, $250 for four years, which she plans to use to get an arts degree at Redmond College. When the results come in, she is the winner of the scholarship. Returning to Avonlea, she finds out that Gilbert's father cannot afford to send him to college, so he will be teaching at the Avonlea school to earn his way. After Matthew dies, Marilla considers selling Green Gables since her eyesight is failing and she may go blind. However, Anne reveals that she has declined the scholarship. Instead of going to Redmond, she will study by correspondence while teaching school in Carmody. Marilla reveals that Gilbert's father was an old beau with whom she quarreled, and she wishes she had forgiven him when she had the chance. Later, Gilbert explains that