So basically, Caroline got betrayed and framed?
So she went on pillaging anything from Bozel fiefdom to bring as gift for Widendorf?
No.
She "WAS" a good lord. She "TREATED" her people well. (Past tense)
Neither her mother or big sister has ever done any Noble-worthy jobs for their people (she talks in this chapter)
So, for the "GREATER GOOD?", she planned to kill her big sister and take the Lord tittle (? mean questionable)
And then, the soldiers and knights who "Fake-supporting" her change their minds and Back-stabbing her. (Reason is unknown)
When her big sister reports everything to the Queen, everyone is thinking that "why didn't the big sister died instead"
The Queen even ask it in her face.
Now she became a Traitor / Criminal of the Kingdom. If she stays here, she and her subordinators will be hanged.
So she wanted to flee to Widendorf. And she needs a gift in order for Widendorf to accept her. She went and pillaged her own village, her citizen.