The Jews were stripped from their identities and were placed in ghettos. Many of the Jews didn't realize what was happening but some knew that this was meant to make them feel less than.
Jews were on a cattle car to the camps and Madame Schacter's kept yelling "fire" because she's seeing the concentration camps. No one in the car understands why she's yelling so they get mad and beat her until she is quiet. When they arrived at the camps then they understood what she was yelling about. They could smell the burning skin and could see the people in the camp.