Do nothing for now.

"Perhaps it's better if we don't do anything about it at all," you suggest. Katherine gives a strange look so you elaborate further. "I mean if it came out that he was sleeping with a student he would lose his job and then his reputation would be ruined. Who knows? Things might always turn around with his wife."
"Yeah I guess your right. I hadn't thought of anything like that," Katherine reluctantly agrees with you.
Katherine then returns the dairy and letters to its hiding spot and you both leave the room the way it was. Your erection has subsided to a less noticeable level in the last few moments so you are able to walk out without any tell tale signs thankfully.

Having done all there is to do at Carla's house, Carla having left almost half an hour ago, Katherine locks the house up and hides the keys away.
"Ooh I'm so going to make that bitch pay for not telling me though," Katherine says with a laugh finishing the matter for now as you get into your Jeep and drive off for the school dance.
The school is about twenty minutes away set right in the centre of town on extremely valuable real estate. The school more than makes up for it investment with the tuition fees it charges making it quite exclusive to go too. You're lucky your parents are reasonably well off enabling you to attend. The car park at the school is full of students cars and you are just able to find parking amongst the other 4 wheel drives, convertibles and other luxury cars the kids here drive.

Katherine hands you back your jacket as you come to the dance hall. You enter with her on your arm drawing more than a few envious stares amongst the male student body. Katherine had been hot property before the dance with loads of people asking her as their date. She had turned them all down saying she would most probably come alone. If Katherine notices these looks, she doesn’t show it, as she is already looking scanning the crowd for her friends. "Hey there's Carla," she says leading you off into the press.
Carla squeals with delight at her friends arrival and gives Kat a big hug. She also manages to sneak you a wink and an encouraging nod at the two of you together.
"Oh my God! This hall is so amazing," she tells Katherine.
"I know its beautiful. I cant believe what they have done with it," Kat readily agrees.
The girls chat happily amongst themselves for a few minutes as the band hired for the evening completes thier warm up. Since you arrived late with Katherine it seems you are no sooner through the doors and they start playing. With the arrival of music Katherine is **** to cease her conversation with Carla and turns her attention back fully to you. "So do I get the first dance or what?" she asks you with that smile you are quickly succumbing to.