In this scene the new jester has arrived at the castle the only problem is the real jester was waylaid on the road and the man standing in for him, while a natural comic, is really a spy and impromptu agent for a group of rebels in the forest. The whole film is a classic medieval comedy like they don't make anymore.
And for a bit of tongue-twister fun here's a later scene. The jester now must fight in a joust to the death for the hand of the princess but his armor's been magnetized by a lightning bolt and the princess's witch-maid has been ordered to make sure the jester succeeds. Too bad he doesn't know how to fight! I found a clip that includes the jousting scene too.
Enjoy! And have a great weekend.