Chapter Two should introduce the fantasy world. It will be new to the hero. Describe the things the hero encounters in this new world which are different than what they are used to. New characters should be introduced. Your story will need a sidekick for the hero, a mentor figure, and of course a villain. The hero should learn about the villain in Chapter Two but not necessarily see the villain. Most importantly, the hero should learn about their quest. The hero will need to accomplish a goal by the end of the story. The importance of the quest should be made clear to the hero.