Lady Gwyn and Lady Saffir are marveling at Sir Kay's skills as well as the crowd. Arthur sits and watches, making slight remarks.
Kay tells Arthur to get his sword for the next match only to realize that he left it at the inn, forcing Arthur to find him a new one very quickly.
The inn is locked up so Arthur pulls the sword from the stone which he saw the day before, unknowing that doing this will make him king. Merlin and Archbishop are watching from the shadows without Arthur realizing.