I really love the way Tough Pigs describes this moment:
"That part in The Great Muppet Caper when Kermit and Piggy are arguing because she lied to him about being Lady Holliday, and he tells her she's overacting, and she gets insulted and starts crying, and he comforts her and apologizes, and then the resolution of the overacting argument kind of blends into the resolution of the lying about being Lady Holliday argument. And then they're in love, and they go ride bicycles."