Valerie and Peter plan to run away together, only to learn that the Wolf has broken its truce not to prey on the townspeople in exchange for cattle stock sacrifices and has murdered Lucie, who is revealed to have had a crush on Henry Lazar.
Valerie finds Suzette mourning Adrian and figures out that he was her love. She also realizes that Lucie, being the older daughter, should've been the first to wed and should have been engaged to Henry, but could not as she was the illegitimate daughter of Adrian, making her Henry's half sister.
Arriving at Grandmother's house, Valerie is horrified to find her dead, and learns that the Wolf is her father, Cesaire. He reveals that the curse was passed to him by his own father, and he intended to leave the village but wanted to take his children with him. He sent a note to Lucie pretending to be Henry to meet him at night so he could ask her to accept her "gift". However, upon confronting her, he couldn't communicate with her, and, realizing she was not his daughter, murdered her in a fit of rage. He then took revenge against Adrian, his wife's lover, and now wants Valerie to accept the curse.