Juliet tells Sidney of a disturbing event that took place in the afternoon. She was walking along the cliffs with Remy and Dawsey when they saw a woman coming towards them. The woman had a German Shepherd with her. The dog was friendly and jumped on Juliet. She laughed, but then heard gagging behind her. Remy was vomiting violently. Dawsey yelled to get the dog away and finally, the woman dragged her dog away, apologizing as she went. Dawsey carried Remy to Juliet's house, where Juliet drew Remy a bath and put her to bed. Dawsey then explained to Juliet that the guards would let dogs attack the prisoners for sport. He lamented that good will isn't enough to make Remy better.
This event makes it clear to Juliet and to Dawsey that simply being kind to Remy can't make the trauma of the camp go away. For her, dogs will likely continue to be terrifying and serve as reminders of what she experienced at the camp. Again, Dawsey shows that he's using the social skills he's learned from the Society to stand up for his friends in the present, though he recognizes it might not be enough.
Juliet is ashamed of herself for thinking that Remy was well enough to go home, and wonders if she just wanted Remy to get over it. She confesses too that when Dawsey said that good will isn't enough, she wondered if good will is all Dawsey feels for Remy.
The fact that Juliet is still thinking about whether Dawsey might love her indicates that she's still in love with him, even if she won't admit it.