Thatcher's leadership is challenged after Geoffrey Howe tenders his resignation in Parliament. Thatcher asks Elizabeth to dissolve Parliament but is reminded that both the Conservatives and the country are against her. She later steps down and receives the rare honour of the Order of Merit from Elizabeth. Despite doubts about her capability to carry a solo trip, Diana travels to New York City on a Concorde and charms the general public. When the family gathers at Balmoral for Christmas, Elizabeth refuses to listen to Charles's complaints, telling him he needs to be more grateful for their privilege. Philip tells Diana she is not the only person suffering and should focus on serving Elizabeth, warning her of the consequences if the marriage should fail.

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