He really looks like a bland teacher. Or an older MC.
Don't smoke. It's bad for you.
I wouldn't assume he used actual magic for that trick.
Just a standard prisoner's dilemma. Except that the baseline is a pass, and both of them have to pass for any meaningful progress. If you betray, you get a reward, but you're unable to pass the next trial, so it's just not worth it.
Why would you consider betrayal between these two?
Because you get told you have been betrayed.
It's not the prisoner's dilemma, it's just framed that way to give you the actual dilemma.
You have can see your partner has betrayed you. do you:
1. Accept and let your partner win alone (Anna)
2. Retaliate and make you partner lose too.
3. Realise it's a trick and there is no betrayal (Grace)
And a possibly 4th option of panicking and getting out of the chair, in an attempt to turn off the candles.