Wong Fei-Hung and his buddies ogle g a young woman at an outdoor restaurant. His buddies bet Wong that he can't get her to kiss him. He tells them not only will he get her to kiss him, but hug him, too. Nearby we see a bucket full of water with eels in it, most likely to be killed and eaten.

Wong walks over to the girl and convinces her to blow into his eye to remove some dirt. When she blows, he moves his head so she kisses him on the cheek. Then he yells snake! and points to an eel crawling between her feet. We didn't see him pick the eel up or put it down, but there's no doubt he put it there to trick her. Scared of the snake, she jumps into his arms, hugging him, and he tells her not to worry, he'll kill the snake, all the while smiling at his friends.

Her mother sees the incident and accuses Wong of trying to get fresh with her daughter. Then she attacks him with much better kung-fu than his, ultimately defeating him and making him run away. When he gets home both women are sitting with his father and he learns that the woman is his aunt and the girl is his cousin.

As I said, the snake is played by an eel. I'm sure Wong knew it was an eel but he hoped that the girl didn't know what it was when he yelled "snake" and she saw it between her feet.