Henry's wife comes to tea and, because she seems to be the woman in Janet's nightmares, Janet stabs the woman to death and is promptly committed to an institution. The woman in white is revealed to be Grace, disguised with a wig and mask and in cahoots with Henry. They marry, but Grace begins believing that Henry is trying to drive her mad. Under the impression that Janet has escaped from the asylum, Grace stabs Henry to death, expecting Janet to be blamed. Janet, however, never left the asylum and Grace is brought to justice.