Annie is happy at her new rich home; she feels as if living a dream and hopes to invite Candy to her new home. But Mrs. Brighton does not want people to know Annie lived at Pony's Home and Annie has to break all contact. After Annie's final goodbye letter, Candy runs off into the hills and forest where she meets a handsome "prince", who compliments her that she is very pretty causing her to make her smile again. He tells her she is prettier when she smiles than when she cries...