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The mouse tries to dry them off by telling a dry story: he recites English history in flat, uninspired prose.
Words cannot dry you off.
The Dodo suggests a Caucus Race. Alice and the animals line up and race around in circles, starting and stopping whenever they please.
You do not stop and start in a race.
The Dodo awards Alice with the thimble she had in her own pocket.
She thinks it's all totally absurd because it was hers to begin with, but she dares not laugh for fear of offending them.