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1) The animals and Alice make it to the shore, wet and grouchy. The mouse tries to dry them off by telling a dry story: he recites English history in flat, uninspired prose. At some point, he uses the word "it" without an antecedent, which causes confusion as the animals argue about what "it" is.
2) The Dodo suggests another method of getting dry, as everyone seems to be as wet as over. The animals are initially reluctant to follow the Dodo's advice, as his speech is full of grand words that the other animals don't understand.
3) The Dodo suggests a Caucus Race. Alice and the animals line up and race around in circles, starting and stopping whenever they please. After a half-hour or so, they are all quite dry. The Dodo declares that they are all winners.
4) Alice is charged with the responsibility of giving prizes to all of them: all she has is a container of little candies. She gives them one candy each.
5) Alice asks the mouse to tell his tale, and he begins. But Alice is transfixed by the mouse's tale, and she looks at it as he speaks. Her impression of the tale is merged with her impression of his tale, and on the page the mouse's story, in verse, is written in the shape of a mouse's tail. The mouse accuses her of being inattentive, and wanders off in a huff.