News of Irma’s discovery gets around, and, with interest around the case renewed, police are called to investigate many false leads around Hanging Rock.

In Melbourne, a detective interviews Mrs. Appleyard and suggests that the girls might turn up in a brothel in Sydney—a suggestion that disgusts Mrs. Appleyard.

Mrs. Appleyard is stressed by the events unfolding at the college: Irma’s father writes to say that she will not return to the college once she has recovered; another student, Muriel, is withdrawn from the school by her father; Tom the handyman and Minnie, a servant, are leaving shortly to be married; Mademoiselle de Poitiers, also engaged, gives her notice; and Miss McCraw’s position is filled by a new mathematics teacher, Miss Buck, who is disliked by the students.

Mrs. Appleyard cancels Sara’s beloved art classes and dismisses the art teacher because Sara’s guardian is late paying her fees; Mrs. Appleyard reflects on how much she despises Sara and calls her in to her study to tell her that she can no longer study art and that she may need to be sent back to an orphanage. Sara, already reeling from the disappearance of her best friend and roommate Miranda, is devastated.