Everyone in the Neighborhood of Make-Believe now knows that Lady Elaine is still dwelling on that day long ago when somebody hurt her feelings, but when the time comes to "judge" all the artwork she arrives not with a judgment, but with a collage of all the neighbors. It is Lady Elaine's rightful act of compassion toward those around her. Mr. McFeely and Rogers share a video collage of artists in their various fields.
The Neighborhood of Make-Believe sees Chuck Aber and HulaMouse's finished sand sculpture. Lady Elaine quickly criticizes it and just about everything else. But the sand sculpture inspires Lady Aberlin to dance, and leads Daniel to create a tiny mobile. Daniel suggests why Lady Elaine might be hurting people's feelings. Rogers does a video insert of his visit to a lady's pottery.
Rogers takes his final visit to his sand table, leading to a video insert of Jessica Ricciardelli playing with sand at a beach. Afterward, Rogers makes his second and final trip to Tony Chiroldes' toy-and-book store. King Friday pronounces the Neighborhood of Make-Believe will hold an art festival. That doesn't impress Lady Elaine, who appoints herself the art judge.