Theory:

Quixote: Right there! Don’t you see that awful creature waving its four arms?
 
Sancho: But Master...that’s a windmill.

Quixote: I tell you these are ogres; and if you are afraid of them, go aside and say your prayers, while I engage them in combat.
 
Sancho: Master, that’s a windmill!

     [Unfortunately, Sancho’s shouts and warnings pass unheard. Don Quixote and Rocinante charge the windmill at full speed.]

Quixote: Huh? Prepare to face my spear, Ogre!

     [With that, Don Quixote fly towards the windmill and collide with it.]

Sancho: Master, are you alright? See? I told you it was just a windmill. Did I not give you a fair warning? Did I not tell you that they were but windmills?

Quixote: Look Sancho! The ogre is more seriously wounded than I am!

     [In fact, the windmill is working perfectly fine. Sancho does his best to dissuade Don Quixote from attempting anything else reckless.]

Sancho: Ha haha. Oh, you are absolutely right. You are a great knight indeed, and you have defeated the fearsome windmill beast!

     [After hitting his head on the windmill, Don Quixote become even more disoriented.]

Quixote: Listen to me, Sancho, someday people will write of our great exploits. Our names will live on in the memories of generations to come. But we must prove worthy of that honour by vanquishing villains and upholding justice. Do you understand?

Sancho: Yes, Master.

      [As Don Quixote and Sancho pass a farm, they see a thick cloud of dust appear. Don tells him that here is undoubtedly a prodigious army marching in their direction.]

Sancho
: O Sir! what must we do?
 
Quixote: Do! why, we must at once go to the help of the weaker side, of course.

     [Don start to name the leaders and principal knights in each army, and to describe the different nations represented.]

Sancho: But, Sir, not a single one of the knights and giants that you have named do I see at all.
 
Quixote: How now! At least you must hear the neighing of steeds, the sound of trumpets, and the rattling of drums.
 
Sancho: I hear nothing, but the bleating of many sheep and lambs.
Explanation:
  
Don asked Sancho if he could see the animal waving with its four arms. Sancho said that it was just a windmill. Don spoke out and said that it was an ogre. Don said to Sancho to go to the side and tell his prayers if he was scared, while he went to attack the giant. Sancho repeated that it was just a windmill. Don did not bother to listen to Sancho; He continued to charge at the windmill with full force like a soldier on his horse Rocinante. He told the giant to prepare himself for the war to face his spear and went forward and hit the windmill.

Sancho asked if Don was alright, or if he hit himself. Sancho said that he had already warned him that it was just a windmill. But Don did not listen and said that the giant was more hurt than him. The windmill was working fine, and Sancho decided to make sure that Don did not repeat his irresponsible actions. So, Sancho said that Don was correct and that Don was a very great soldier and that he won the battle. The windmill beast had lost the fight.

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After Don hit the windmill on his head, it made him more confused. Don told Sancho that people would write about what great warriors they were in books, and the coming generations would talk about how they overpowered evil, and justice prevailed. But Don said to Sancho that to get that honour, they should prove themselves by defeating the enemies and prevailing the justice. And Sancho agreed to the Don words.
 
Now Don and Sancho went through a farm, and they saw an enormous cloud of dust flying. This time, Don imagined it to be an army that was approaching them. Sancho agreed and said that what can be done about that as he just wanted the talk to finish. But Don did not leave it at this. He said that they should go and help the weaker side. Don remembered all the names of the knights who had been part of such wars, but Sancho told that he was not able to see even a single person there. Don continued and spoke out and said that Sancho, by this time, should hear the trumpets of the elephants, neighing of the horses, from the army which was approaching them.

Sancho straightforwardly said that he just heard some lambs and sheep bleating and nothing more.
 
Meanings of difficult words:
 
Numbers
Word
Meanings
1.
DisorientedConfused.
2.
CombatBattle.
3.
Rocinante Rocinante is Don Quixote's horse.
4.
Vanquishing Defeat.
Reference:
State Council of Educational Research and Training (2019). Term-2 English Standard-7. Adventures of  Don Quixote -  Miguel de Cervantes. (pp. 83-86). Published by the Tamil Nadu Textbook and Educational Services Corporation.