Elizabeth and John speak about how John should go to Salem and tell the town that he doesn't believe there are witches
Marry Warren, their servant, comes home from the court where she was a judge and accused people of being witches.
She gives Elizabeth a poppet she made during the court.
Hale comes and tells them that Abigail accused Elizabeth of being a witch
Herrick and Cheever come to take Elizabeth to jail but John wants proof
They find the poppet that Mary Warren made her with a needle in its stomach
The signficance is that Abigail complained about a pain in her stomach, in appoximately the same place as the needle in the doll
They use that as evidence
We also find out that Martha Corey, Giles's wife, and Rebecca Nurse are accused of witchcraft
John wants to testify against Abigail but knows she will accuse him of adultery if he tries
And Mary Warren won't testify because she knows Abigail will kill her if she tries.