Returning to Jolly Roger Bay will only have a single big change, which is that the previously sunken ship is now on the surface. That’s about the only really big change with this level from here on out, which will come into play in a later star. For now, though, you will be interacting with the eel once more. He can be found in the deep portion of the waters, so head there now. In place of where the sunken ship was located is a jet stream that has a star at the bottom of it, but that’s for later. Considering the name of the star, you’re looking for the eel again.
If you look at the far wall, you should see the eel’s head sticking out of it. Head on over to it and do the same thing as before, noting that you won’t be going in the hole it came out of this time. Instead, look at the eel’s tail and you will notice the star is attached to it. That means you will be chasing after the eel and trying to touch the star, which will cause it to come loose. There’s only one problem, though, which is that the eel will only stay out of its little home for a period of time, meaning it will go back in once it does a lap. Once you get the star loose from its tail, though, it is yours for the taking.