Pepito, the son of the Spanish Ambassador, invites Madeline and her fellow students to a Gypsy carnival. However, in the chaos caused by a sudden rainstorm, Miss Clavel and the other girls lose sight of Madeline and Pepito, who are unintentionally left behind on the Ferris wheel. The two children find themselves guests of the gypsies, and soon wind up part of the carnival themselves.

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