Caroline's brother bets everything on her next race, hoping his winnings will cover his other gambling debts. Caroline knows Amelia is the best racer at Miss Blake’s Riding Academy, but kind-hearted Amelia agrees to let Caroline win this one. They fool the race officials, but they can’t fool Miss Blake.

When Miss Blake confronts the girls, they confess all. She agrees not to expel them, but they still must be punished. The crying girls hold each other’s hands, tearfully comforting each other as they each receive a harsh whipping from Miss Blake's riding crop.