Chief Miracola is the first important character you'll meet in Chapter 3. He's the head of Miracola, and has a daughter cursed with a sleeping spell. He sets you off on a journey for an awakening scroll, and in return he'll repair your shipwrecked Sub-C.
Banette is the daughter of Chief Miracola. She has been spelled to a deep sleep. The only thing that can awake her is the magic scroll from the mountain hermit.
You go to seek help in getting into the Shecola Castle, but the Fortune Teller can't help you without her Crystal Ball. She dropped it into the pond at Ghost Village so, of course, you have to go find it, and bring it back to her.
Ah, the beautiful(*choke*) Queen Shecola! The head of the Shecola never leaves her castle, so it is rumored by the men outside that she is very beautiful. She helps you to get to the Mountain, and give you a new weapon: The Shooting Star.
After you battle your way to the top of the Mountain, you'll meet the Mountain Hermit. He gives you the Magic Scroll to wake Banette, then you run back to the village with it.