Act 3 of Arms and the Man takes place in the library of the Petkoff house.It is a comfortable room with many books and furniture, but it also shows that the family is not very used to true elegance.The tension between the characters builds until Bluntschli reveals some surprising news.This act ties up the story and resolves the conflicts between the characters.Bluntschli is practical and straightforward, while Raina is still a bit dreamy and dramatic.Sergius feels attracted to Louka, even though she is a servant, and he admits that he likes her boldness and honesty.She points out that he is not as brave and noble as he pretends to be. She even accuses him of being a hypocrite because he tries to act like a hero but doesn't follow his heart.Raina agrees, but only after admitting that she loves him for his honesty and practicality.Sergius, realizing that he and Raina are not truly in love, steps aside gracefully.This makes Raina reflect on herself, and she realizes that he might be right.Louka, in return, challenges Sergius.Catherine tries to calm her husband down, but he continues to grumble about how his coat has disappeared.