When Dogberry and Verges enter with Conrad and Borachio as their prisoners, onnly then does Don Pedro realize that Benedick told him Don John had fled. He approaches the prisoners and demands to know why they have been arrested. Borachio tells him the entire story, causing Don Pedro to exclaim, "Runs not his speech like iron through your blood?" (5.1.227-228).
Leonato arrives with the Sexton, who has informed him of what happened. Furiously Leonato accuses Borachio, Don Pedro and Claudio of killing his daughter. Claudio and Don Pedro plead their innocence but, realizing they are guilty of mistakenly accusing Hero, promise to inform the city that she was innocent. Claudio further promises to marry Leonato's niece, whom he tells Claudio is his sole heir.
Leonato then turns back to Borachio and demands to know Margaret's role in the scheme. He tells Leonato that Margaret is innocent and did not know what she was doing. Leonato orders the watchmen to bring Borachio and Conrad with them and leaves to question Margaret.