Daemon wakes up on the ground with Mysaria at his side, attempting to ease his hangover. He snaps at her, saying he doesn't need help from a "common whore." She chastises him but leaves him to his own devices, sitting in filth.
Otto meets with Viserys to discuss some troubling news. It turns out that the boy who followed Rhaenyra from the brothel was one of Otto's spies, who told him she was there. Otto tells Viserys that she and Daemon were in the brothel and "engaged in behaviors unbecoming of a princess." He tells her that, as far as could be seen, they had sex.
Hidden away is Alicent, who watches the conversation from afar. Viserys refuses to believe him, but Otto tells him he can trust his spy and that her maidens have also told him that they saw Rhaenyra leaving the castle in disguise. Viserys accuses Otto of making news up to get Alicent's child (Otto's granddaughter) on the throne, no matter the cost. Viserys throws him out of his chambers.
Ser Criston returns to Rhaenyra's chambers, telling her that Alicent wants to see her. They meet near the Weirwood tree, and Alicent demands to know what happened between Rhaenyra and Daemon. She doesn't beat around the bush and accuses Rhaenyra of sleeping with Daemon, and Rhaenyra denies it, calling it a vile accusation.
While technically telling the truth (they didn't have sex,) Rhaenyra doesn't tell Alicent the truth about them coming about as close as you can to sleeping with one another.
Let's call it a lie by omission.
Rhaenyra tells her that questioning the princess' "virtue" is an act of treason (women are expected to be chaste before marrying.) It's pretty clear that Alicent doesn't believe Rhaenyra as she tries to tell Alicent that Daemon got drunk and abandoned her for someone else in the brothel.
Swearing on the memory of her mother, Rhaenyra continues to tell Alicent that she didn't sleep with Daemon. Alicent tells Rahenyra it was foolish to put herself in that situation and that she and the King have worked hard to find her a match. If a lord discovered that Rhaenyra was, as Alicent puts it, sullied, then it could ruin everything. No mention is made of Rhaenyra sleeping with Ser Criston, which will undoubtedly be a point of contention in the future.
Daemon is dragged into the Throne Room in front of Viserys. Viserys beats him, demanding to know the truth of what happened between Daemon and Rhaenyra. Viserys is furious, saying that if they did indeed have sex, she has been ruined and that no lord will have her now. Daemon, speaking some truth, says that it shouldn't matter what some lord thinks; Viserys is the King and can demand a marriage if need be.
Attempting to rectify the situation (and position himself as King, no doubt), Daemon tells Viserys he'll marry Rhaenyra and wed her in the Targaryen traditions. Viserys tells him that's impossible since Daemon is already married, but Daemon says it didn't stop Aegon the Conqueror from marrying multiple times.
"YOU ARE NO CONQUEROR. YOU ARE A PLAGUE," Viserys angrily tells Daemon, with a knife at his throat. Viserys, finally having enough, bans him from King's Landing and orders him back to the Vale, where his wife is.
Viserys admits to Alicent that he hasn't spoken to Rhaenyra yet but that it is not in her nature to be deceitful, according to Alicent. Viserys says that no matter what the truth is, both Daemon and Rhaenyra are equally at fault. Both Rhaenyra and Daemon are chaotic and tend to bend the rules, so it would make sense that they share the same personality.
Finally, Rhaenyra and Viserys meet with one another to discuss what happened. Seeing the dagger of Aegon in the fire, Viserys pulls it out and shows her the writing in Valyrian that's etched into the steel.
"From my blood comes the prince that was promised. And his will be the Song of Ice and Fire."
He explains the responsibility of the knowledge of the coming threat from the North is bigger than both of them and, more importantly, her desires. The previous King would have disinherited her according to him, even if it was a lie. Despite not asking her for the truth, Viserys says it doesn't matter. Only the perception does.
"Were I born a man, I could bed whomever I wanted. I could father a dozen bastards, and no one would blink an eye."
Viserys knows there is truth in her words but reiterates that she is a woman and what she thinks is no longer important. Rhaenyra believes that he will strip her of her titles, but he won't because he has to hold the Realm together.
He gave her a chance to pick her husband but she will now marry Laenor Velaryon without protest. Repairing the relationship between that house and the Crown is important, and she agrees to do so. Rhaenyra confronts Viserys about Otto's true motives and says he can't be trusted and cares not for the Realm but only for himself and his family.
Otto meets with Viserys in the Small Council chambers, where he admits that Otto's ability to ascend to the Hand of the King position in five days was impressive. Expressing his gratitude for Otto's help in making him King but he finally realizes that Otto has been scheming against him the whole time. His only goal has been to see Alicent marry Viserys and get Aegon on the Iron Throne. Viserys thanks Otto for his service, removes the Hand of the King pin, and fires him.
A Maester arrives at Rhaenyra's chambers with a tea that her father sent. He tells her that the tea is designed to rid her of any "unwanted consequences."