These philosophical arguments all take place within view of the Lisbon port. Then, a huge earthquake occurs in which James falls overboard, while trying to save another sailor, and dies. Candide tries to jump in after him, but is stopped by Pangloss who proceeds to tell him that the Lisbon harbor was formed specifically so that their Anabaptist could drown in it. Eventually the ship sinks, Pangloss, Candide, and the sailor that let James die are the only survivors. The two of them floated to Lisbon on a piece of wood. Much to the surprise of Candide and Pangloss, the authority in Lisbon has decided to have an auto-da-fé in response to the earthquake (this is where heretics are burned at the stake, in the case to prevent the earth's quaking). Candide and Pangloss are arrested to join the roast, Pangloss for his optimistic theories and Candide having listened. The Inquisition hanged Pangloss and Candide was flogged.
After all was said and done, Candide turned from the scene, only to find an old woman who took care of him and then led him to Cunégonde. The Mademoiselle Cunégonde explained that her disembowelment was not fatal and that after being taken a prisoner of war by a Bulgar captain, he had sold her to a Jew, called Don Issachar, who was later threatened by the Grand Inquisitor with an auto-da-fé, if he did not compromise on ownership of the beautiful Cunégonde. Then, at an auto-da-fé made by her Grand Inquisitor, Cunégonde saw Pangloss hung and Candide flogged. Then, she sent the old woman to get him.
After the Mademoiselle is done telling her story, it is only coincidental that the Don Issachar comes to enjoy his rights to Cunégonde. Candide slays him fearlessly and is then wishing to be in the presence of Pangloss for advice. The old woman gives the two some counsel, but while she spoke, the Grand Inquisitor arrives at the house for it is after twelve, making it his day. With no other choice, Candide killed him as well. The old woman, seemingly taking the place of Pangloss, directs the children to saddle horses and go to Cadiz.
After staying a night in Badajoz, the riches of the group are gone. The only other person having been there was a reverend Franciscan, whom Voltaire makes the thief. Now broke in Cadiz, Candide and his group passed a raid occurring and saluted the general in the Bulgar drill. The general thought this drill was performed so well that he gave Candide an infantry to command and put him on a ship to a new world. Candide hopes that he will find the best of all possible worlds in South America. On the voyage there, Candide and Cunégonde continue to complain. Later the old woman claims that they have seen nothing of suffering, thus her story is told.
The old woman was the daughter of Pope Urban X. Voltaire made this so because Urban X had not existed and he was afraid to give a real pope a bastard daughter. She was a beautiful princess who fell helpless to countless misfortunes, including being boarded by a pirate crew on her way to Gaeta. The ship arrives in Morocco, under the pirates' command, in a time of much war and blood shed. After seeing her mother slaughtered and almost drowning under countless dead bodies, the princess crawled to a spot of shade and fainted.
After being sold so many times, the old woman was put in a situation where everyone was starving and the men had resorted to killing the women for food. However, before they could do this, a religious man persuaded them to only take one butt cheek. Although Voltaire criticizes religion throughout the entire novel, this does not stray from the theme because he criticizes religion, but not each religious being is bad. The only thing Voltaire sees religion fit for is the explanation of creation and the want or hope to live. This hope is what the old woman declares as her weakness because she is still in love with life.
Shortly after their arrival to South America, rumors circulated that Candide had killed the Grand Inquisitor. Anxious as to what she should do, Cunégonde sought out the advice of the old woman. She said that Cunégonde had nothing to worry about for she had not killed anyone and that the governor of Buenos Aires, Don Fernando, loved her dearly so she should marry him. As for Candide, the old woman told him to run away before he could be burned alive. Distraught by leaving his beloved, Candide leaves with his loyal valet, Cacambo.
