how does gandalf and thorin and the dwarfes deal with the bad situation
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Answer:
Thorin continues to search for the Arkenstone and as the rest of the dwarves worry about the armies camped on their doorstep, Bilbo decides that he must take matters into his own hands. With the help of the ring, he sneaks away from the mountain at night and into the camp of the lake men and the wood elves. There, he reveals himself and is brought before the leaders, Bard and the Elvenking. They are suspicious of him, of course, but they relax when Bilbo reveals his secret weapon: the Arkenstone. He gives it freely to Bard to be used as a bargaining chip against Thorin. Bard and the Elvenking are amazed that the hobbit would risk inciting the anger of the dwarves in order to prevent a war. They ask him to stay in the camp for his safety, but Bilbo decides to return to the mountain. On his way out of the camp, he runs into Gandalf, who pats him on the shoulder for his brave deeds. Gandalf has just arrived from his other affairs to see the end of this touchy matter. Newly hopeful, Bilbo sneaks back to the mountain unnoticed.