Tenyong arrives to find Julia busy, embroidering a handkerchief. He ask to see it, but she refuses. Rebuffed, he sulks. Pretending to be angry, she throws the embroidery clamps. He picks them up and asks for forgiveness. Then seeing that the handkerchief bears his initials, he is elated, but she insists it is not for him but for the Spanish priest. Angered by this revelation, he wants to burn it so Julia has to tell the truth.
Shortly, Lucas arrives to report that Tenyong’s father and other men were arrested by the civil guards on suspicion of being rebels.
The Spanish friars instruct Marcelo, the town mayor, to continue the torture of the prisoners, showing no mercy at all, despite the death of seven of them and the near death of Kapitan Inggo, Tenyong’s father.
The head friar tells Inggo’s wife that he has ordered the punishment of her husband stopped and that he would recommend to the Governor the release of all prisoners. However, he tells the other friars that they will go to Manila to advise the Governor General to have the rich and educated Filipinos executed.
Kapitan Inggo meets his family and friends just before he expires. Over his dead body, heart- broken Tenyong swears vengeance. His mother faints in shock.
Tenyong decides to join the rebels and starts recruiting men. Julia tries to dissuade him, claiming that his widowed mother needs him now. Despite her pleas, he is determined to heed the call of duty of his Mother- land and asks Julia to look after his mother. In resignation, Julia prays for his success and safety and gives him her religious medal. They vow to love each other forever.