Kelly: Did I hear right? Riley wanted you to sleep with her in exchange for giving up the bedroom?

Dale: (to himself) I'm a dead man, this time I am...

(In the living room, the argument continues)

Riley: You're misunderstanding everything, things didn't happen like that!

Sarah: Oh yes they did, you wanted to trick Dale into sleep with you, that's a fact, I know it because I was there. I heard everything you said to him, word after word!

Dale: (To self again) Oh, f*ck.

Kelly: Is it true what they're saying? Because if it is, Riley is dead, I won't need Terry the Terrible, I'll gladly kill her myself.

Dale: I know.

Kelly: So it's true.

Dale: Yes, it's true.

Kelly: So Riley asked you to sleep with her.

Dale: As a condition for leaving the dorm, yes. Naturally, I said no.

Kelly: But you were okay with not telling me about it.

Dale: It happened when you were at school, I was going to tell you when I got back from class.

Kelly: A little late, isn't it? - And just out of curiosity, did you ask your brother for advice on this?

Dale: (Sighs) Yes, I did.

Kelly: And what advice did he give you, if I may ask?

If Dale tells Kelly what Terence advised him, one, she's going to hate him more than she already hates him; and two, she's not going to believe that he rejected his advice. But from experience and from what just happened, she knows it's best not to keep things from her anymore.