Is is in the south of England with Arun looking for his mother when they run afoul of smugglers whose use the Channel tunnel for their nefarious deads.
Dido is back in London and "reunited" with her dad, who is again involved in a plot against the king, although it's a different king now. Very exciting, and the wolves make an appearance.
Dido hitched a ride back to the U.K., Great Britain, or whatever it is called in this alternate history book, but ends up in South America, as near as I can figure, where she may be tossed into a lake (the stolen one, after it is returned) to extend the life of someone with a oddly familiar name. There, I don't think that's a spoiler.
"Wicked wolves without and a grim governess within threaten Bonnie and her cousin Sylvia..." Read pre-1998, read again, 'cause it's good. Many words to look up!