Malvolio finds Cesario and gives him the message and the ring. Viola is confused because she never gave the Countess a ring, but takes it anyway. She figures out that Lady Olivia has fallen in love with her while she, herself, has fallen for Orsino. She does not know how to undo the "love knots" which have become tangled, and she curses her disguise for causing such problems.
Twelfth Night: Novel Summary: Act 2, Scene 2