The wolf is part of sending a message meant for the king. The number 4 is related to the 4 people that the kingdom basically threw away people who could have made the kingdom prosper more than how it is now. The message itself basically says, the 4 who were banished are still alive. Will, the king’s brother who was thought to be dead, and 3 nobles who had supported him who were banished to Laval. One of banished nobles is Alicia’s grandfather.
Alicia later meets her grandfather when she is banished for a false crime made up so she can investigate Laval on her own. Her grandfather knows her true identity and Alicia figured out he is her grandfather. However neither side has broached the subject, opting to keep their real relationship hidden for now. The other 2 banished nobles also figure out Alicia is related to the one of the noble families and already guessed who she is related to. These 3 nobles are very smart and could have benefited the kingdom but were banished simply cause they didn’t support the current king. One of them mentions how the kingdom loves to deport their smart people, and question what exactly caused Alicia to be banished, saying that the reason had to be serious enough.
During when Alicia is banished is where the issue with Liz finally gets solved. After being confronted about the charm magic she was not aware she was using. Liz ends up trying to confess her love for Duke. However Duke rejects her. She asks if she had met Duke first like he did with Alicia, would he have fallen in love with her. Duke replies that he would have fallen in love with Alicia, since how Alicia is, is what attracted him to her. Liz becomes heartbroken, she goes through some self reflection about how she was jealous of Alicia, that she did kinda hate her but couldn’t help but admire her because of how hardworking she was despite being called a prodigy/genius. It is later revealed that Liz’s prior actions were all things she thought a saint would do, however being a commoner she didn’t understand how complex solving real life problems would be, like the isolated village problem. Due to the revelation that Liz’s charm magic being activated without her knowledge was due to her secret desire for Duke to look at her romantically, and after her getting rejected. Liz is able to stop it and people who were affected go back to normal. How everyone reacts to her varies, and as someone stated, she’ll have a bit of a rough time. Liz though does apologize to everyone involved, and the whole school becomes peaceful and everything changes. Liz also changes and shows her true self, a normal commoner, a normal teenage girl.
Side note, Duke makes an offhand comment about how he dislikes his looks. Which enrages Liz as she tries to strangle him for that comment, revealing that not only she but many other girls love his looks. This particular bit is more comedic letting Duke know that many girls were actually after him while he was focused on Alicia.