Annie is happy at her new rich home; she feels as if living a dream and hopes to invite Candy to her new home. But Mrs. Brighton does not want people to know Annie lived at Pony's Home and Annie has to break all contact. After Annie's final goodbye letter, Candy runs off into the hills and forest where she meets a handsome "prince", dressed in a kilt, who plays her a song on his bagpipes to make her smile again. He tells her she is prettier when she smiles than when she cries. But he vanishes into thin air soon after. Solely the pendant with a small bell that he dropped is evidence of his existence. Back at Pony's Home a representative of the Leagan family from Lakewood visits to convey the Leagans wish to adopt Candy as a playmate for their daughter. Lakewood is close to Jasper, where Annie lives, and the representative's car has the same sign as the prince's pendant. When Candy learns that the Leagans have a sixteen-year-old son, she agrees to the adoption.