Grover tells Herry's secret (which is actually the alphabet) to Pamela, who tells Fenwick, who tells Rosemary. Herry says to Grover, "You're very good at reciting the alphabet ... but you're lousy at keeping secrets!"
News Flash: A princess says that the one she has chosen to be her prince has bulgy eyes, small ears, and a funny voice, is wearing a hat and coat...and is a frog. Kermit is the only one who fits that description, so she kisses him, thinking he'll become a prince. In a puff of smoke, she turns into a frog. Kermit invites her to "the hop" and she accepts.