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While trying to outwit the soldiers who are occupying their small town, fourteen-year-old Daniel, who cannot lie, and Emily, who discovers she has magical powers, are inexplicably drawn to a mysterious island in the heart of the forest where townsfolk have been warned never to go.

Still holding the fourth key, Arthur Penhaligon receives a suspicious offer from Lady Friday and travels to the Middle House to find out if he should accept it.