Thranduil rises in surprise and awe.
"The heart of the mountain! The King's Jewel." Thranduil says softly.
Lasgalen walks over to it slowly, her eyes wide and looking to Bard. He meets her gaze then looks to Bilbo.
"And worth a king's ransom. How is this yours to give?" He asks.
"I took it as my fourteenth share of the treasure."
Gandalf smiles lightly at Bilbo. Bard speaks again.
"Why would you do this? You owe us no loyalty."
"I'm not doing it for you. I know that dwarves can be obstinate and pigheaded and difficult, suspicious and secretive...with the worst manners you can possibly imagine, but they also brave and kind...and loyal to a fault. I've grown very fond of them, and I would save them if I can. Thorin values this stone above all else. In exchange for its return, I believe he will give you what you are owed. There will be no need for war!" He exclaims.
Gandalf, Thranduil and Bard look at each other before all three men look to Lasgalen. She is shocked that they wait for her council. Her father asks for her council because he is her father and she his daughter. Gandalf asks for her council because he trusts her judgment and is her friend. And Bard looks to her council because he feels something for her and he trusts her with his life. She gives them a single nod, telling them that this is a good idea.
---------------------------------
Early the next morning, we see that the plain in front of the Mountain is covered in legions of Elves and men, armed for battle. The dwarves, also prepared, watch from above the gate blockade. Thranduil, Lasgalen and Bard ride together to the front of the armies and approach their side of the broken bridge over the moat. From above the blockade, Thorin draws a bow and shoots an arrow at the ground directly in front of the trio, who immediately halt in surprise.
"I will put the next one between your eyes!" Thorin yells.
Thorin draws his bow again, and the dwarves on the wall cheer and shake their weapons. Thranduil stares at Thorin angrily. Lasgalen nods as her eyes glare at the dwarves. Instantly, several rows of Elves near the front of the army pull out their bows, nock their arrows, and aim at the dwarves, all in one fluid motion. The dwarves' cheering cuts off abruptly as all of them but Thorin duck behind the ramparts. After holding the pose for a few seconds, Lasgalen raises her hand, and the elves easily put away their arrows. Thorin still has his bow drawn, though.
"We've come to tell you: payment of your debt has been offered...and accepted." Thranduil calls.
"What payment? I gave you nothing! You have nothing!" Thorin yells back.
"We have this." Bard says.
Bard reaches into his robe and pulls out the Arkenstone, holding it above his head. Thorin, shocked, lowers his bow.
Kili yells down to them. "They have the Arkenstone? Thieves! How came you by the heirloom of our house? That stone belongs to the king!"
"And the king may have it - in our good will." Bard says, putting the Stone away. "But first he must honor his word."
Thorin turns and whispers to the dwarves. The army below wait for the order from either their princess or their king. Thorin then yells to them as Balin looks shocked.
"THE ARKENSTONE IS IN THIS MOUNTAIN! IT IS A TRICK!"
Lasgalen's mouth falls agape. At the top of the ramparts, Bilbo steps out from the dwarves.
