Go to the room "An Abandoned Passageway" (this room should contain a rat's nest) and is located under the Governor's office.
OPEN CRATE (it's an implied object), GET MASQUE CRATE -> it's cursed, timed and non-rentable, WEAR MASQUE
Go to Fredegonda (ensuring that you are wearing the masque or she will be agg)
ASK FREDEGONDA PRINCESS, she tells you the story, Go SOUTH, wait until night time and CRY BASIN
The princess appears and inquires about your tears, ASK PRINCESS FAITHLESSNESS OF MAN, she gives you a lute, go NORTH, GIVE LUTE JACINCTA, GET CAT, the princess is restored.