Level 4
You will meet a turtle in the beginning. He will say that a fairy is trapped in the mayor's house. Go that way. When you are in the middle of town, use your eye view. You will see something shining. Go that way and get the key. Go to the mayor's house. The fairy will tell you that it needs a clover to show you the way to the next level. Go out to the water to the left of the house. Use your eye vision to see the clover. Go there, get it, and take it to the fairy. Then, go over the bridge and talk to it. It will say to go down the mushrooms and go through the cave opening. Do so to get to level 5, Mushroom Town.