Thank you for the translation!
A brief note: on page 5, Prince Levi is called "Liam" by the king.
Honestly, Prince Levi's involvement at the end of the chapter is great. Also, regarding the prejudice against Claudia and Gerald, it's actually partially instinctual: Gerald is incredibly powerful, so his power is feared. It's like the fear people have of wild beasts or swordsmen, not unsurmountable, but not completely irrational (as far as random strangers and young children are concerned). The irrational and cruel thing is all the stuff that goes beyond that — people who know her and people in power not considering her will and personality, people refusing to adjust their ideas of her to the reality of experience, and so on. So people like her mother, many of her classmates, and Duke Alfar are all wonderful examples of prejudice in action. Her father and little brother just seem to be sensitive (rather less pardonable in her father's case, but still). As for the kind of prejudice, it isn't racism, which would target a racial group or groups, but another type. That said, the issue is a form of prejudice all the same, and thus does share some elements which are true of prejudice in general. Amelia is another matter altogether, though — she's just a cruel moron.