This is the scene where Prospero forgives Alonso, and also tells Sebastian and Antonio he will keep their plan to kill Alonso secret, forgiving them both too. Later he even forgives Trinculo and Stephano.
Prospero tells Alonso that he has lost his daughter, just as Alonso (who still thinks Ferdinand is drowned) has lost his son - but he means in marriage. He draws back a curtain to show the two young lovers playing chess.
The ship's captain brings news that the ship is safe, and all prepare for the return to Naples for the wedding of Ferdinand and Miranda.
All except for Ariel, who is given his freedom, and Caliban, who will stay on the island.