Galadriel stirrs Frodo from his sleep as she walks past him (she made have said something inside his head?). Frodo suddenly wakes up and follows her to her garden. Galadriel goes over to a pool of clear flowing water and picks up a Ewer and fills it with water, and then turns around and waits for Frodo to have reached the bottom of the steps.
Galadriel: Will you look in the mirror?
Frodo: What will i see?
Galadriel: Even the wisest cannot tell for the mirror shows many things....(she starts to pour the water into the silver basin) things that were, things that are and some things (last drops of water leave the Ewer) that have not yet come to past. (Then she steps back from the mirror and watches.
Frodo cries out loud and then we see Galadriel close her eyes^, this indicates that she is seeing what Frodo sees. Frodo then sees Sam and other hobbits in chains and The Shire looking grey and full of factories, and then he sees the Eye of Sauron. The Ring begins to pull towards the water, but Frodo pulls it back and himself and falls on to the ground.
Galadriel: I know what it is you saw, for it is also in my mind (telepathically) it is what shall come to pass if you should fail. The Fellowship is breaking it has already begun. He will try to take the Ring from you, you know of whom i speak. One by one it will destroy them all.
Frodo: (telepathically)If you ask it of me, i will give you the One Ring. (He opens his hand to show that she can tke the ring)
Galadriel: You offer it to me freely. i do not deny that my heart had greatly desired this. (She walks towards Frodo with her arms shaking and reaching towards the Ring-her image changes) in place of a dark lord you shall have a Queen! Not dark but beautiful and terrible as the dawn! Treacherous as the sea! stronger than the foundations of the Earth! All shall love me and dispair! (Galadriel returns to her normal appearance shaking all over)
Galadriel: I pass the test! I will diminish ans go into the west, and remain Galadriel.
^ The last sebtence Galadriel says means the Valar have finally allowed her to go into the west as she was an exile.^