Leandro comes in just in time to stop Simpson following them to cause trouble. In return the Englishman explains the whole plot to him - how Juan is using Marola as bait to get Leandro to smuggle in a shipment of cocaine. He warns the youngster that if things go wrong it will mean jail, and leaves the sailor confused and unhappy. In a famous song Leandro wonders aloud - can Marola really be so bad? No, she is unhappy, but would never lie to him (Romanza: "!No puede ser!".) When she comes into the bar, he tells her he will do anything to win her, even commit a criminal act. Horrified, Marola confesses she loves him, but they are interrupted by Antigua. As soon as Marola goes to sort out the empty bottles, the old woman takes the opportunity to thank Leandro for falling in love with the tabernera - now the married couples can live in peace again.