Theory:

     His wife was furious and she dived in to hide herself at the bottom of the river leaving the little ones to pester their father.
 
     The crocodile was in a serious dilemma. He loved his wife and was very fond of his friend too. Finally, he decided to be on the side of his wife. She was his life-partner after all. ‘I know it’s a sin to betray a friend, but I have no choice,’ he said to himself. ‘I’ll invite the monkey home and hope for the best.’
Explanation:
 
The wife crocodile couldn't accept her husband's answer. Though tired of having a heated argument with her husband, she never stopped fighting. The wife was adamant in getting herself a favoured result. Suddenly, the wife crocodile did the trick at this moment when her anger was out of control. She jumped into the river and reached its bottom, leaving the little crocodiles to pester their father.

The husband crocodile did not know how to deal with the situation. It was in a confused position between a good friend and a lovable wife. He likes the monkey. At the same time, he loves his wife more than anything. Finally, as a dutiful husband, he chose to be on the side of his wife. She was his life-partner, after all.
 
The crocodile finally decided to bring the monkey to its home, though he felt its a sin to be disloyal and kill such a good, generous friend. Still, he didn't have any other choice to convince his lovely wife.
 
Meaning of difficult words:
 
S.No
Words
Meaning
1.
Furious
Extremely angry
2.
Dive
To jump into water
3.
Pester  
To irritate someone repeatedly 
4.
Dilemma
A situation in which decisions has to be taken between two different things
5.
Fond
Refers to liking a person or a thing
6.
Betray
Not being loyal to someone who trusts you
7.
Generous
Giving people more than expected or needed
Reference:
National Council of Educational Research and Training (2006). The Monkey and the Crocodile (pp. 20-24). Published at the Publication Division by the Secretary, National Council of Educational Research and Training, Sri Aurobindo Marg, New Delhi.