Grace says that Tedd has problems with her being male because it feels like being attracted to her when she is male proves the homophobic bullies right. Tedd remarks that she knows him better than he does himself. Grace says that she made the party a failure by not realising how Tedd feels before. Tedd says that it was a good party even though he was uncomfortable but Grace explains that she chose the theme for his sake.
- The Verres family's house