Theory:

     At first the king did not pay attention to these reports, but how long could he ignore these governors and their endless stories about the shepherd? One thing was certain, the king discovered. The new governor did carry an iron chest with him all the time.
 
     So, one day, the new governor was summoned to the palace. He came riding on his camel, and to everyone’s delight, the famous iron chest was there fastened securely behind him on the camel’s back.
Explanation:
 
Initially, when the king heard such false stories about the shepherd (that shepherd collects and hides money),  he ignored it. Still, the governors did not leave the king unattended to their false stories in regard to the shepherd's honesty.
 
Governors complaining to the king.jpg
Governors complaining to the king
 
The king couldn't ignore the governors' complaint for a long time. He didn't even know how to arrive at a solution for this problem. The king, at last, decided to find out the truth. He discovered one thing for sure: the shepherd carries an iron chest with him always. Having discovered it to be true, the king wanted to meet him and understand the purpose behind carrying it every time. So, as a result of it, the king ordered the shepherd to appear for a meet in the palace.
 
The new governor appeared in the palace as ordered by the king. Unfortunately, he carried his iron chest even on that day behind him on the camel’s back. Everyone who blamed the shepherd for being dishonest was happy to see him coming along with his iron chest.
 
Shepherd reaching the palace.jpg
Shepherd reaching the palace
 
Meaning of difficult words:
  
S.No
Words
Meaning
1.
Unfortunately
Refers to something sad or disappointing
2.
Delight
A great feeling of happiness
3.
Summon
Officially ordering someone to come to a place
4.
Fastened
To close something like a piece of cloth with buttons, clip, zip, etc.
Reference:
National Council of Educational Research and Training (2006). The Shepherd's Treasure (pp. 07-10). Published at the Publication Division by the Secretary, National Council of Educational Research and Training, Sri Aurobindo Marg, New Delhi.