During this portion of the book Peter and the serving man are having a conversation while clearing the plates and waiting to go to the great chamber. They hurry and clean so they can go to the great chamber where Romeo and Juliet are.
At this point the Capulet's cousin and the Capulet are making small talk and discussing how long it has been since they wore masks to a party. They cannot believe how long it has been since they have and they realize how old they have gotten.
During this portion of the play Romeo notices Juliet on the arm of another knight and does not yet know that she is Juliet. Romeo admires Juliet's beauty from afar yet she has not noticed him.
At this point the Tybalt and the Capulet realize that that Romeo is a Montague and that they are enemies of the Capulets. Later they will find out that Juliet is a Capulet.
The Tybalt and Capulet are now fighting over whether Romeo is worthy of even being at the party . The Tybalt believes that Romeo is only mocking their party and shouldn't be there,while the Capulet believes Romeo should be left alone and explains that he carries himself as a dignified man.
Romeo is informed by a nurse that has nursed Juliet that she is a Capulet, and also that whoever shall marry Juliet will become wealthy. Romeo is now aware of how much trouble he is in because he fell for the enemy.