Judith’s interest in John is indeed because she finds him handsome. She asks Kit whether Kit has “set [her] cap” (is trying to attract) John, which suggests that Judith plans to woo John if Kit hasn’t already decided to do so herself. Meanwhile, her comment that William probably only likes Kit because of her dress, is spiteful—either Judith is still jealous of Kit’s dresses, or Judith is interested in William. In this case, William Ashby may be the same William that Judith mentioned previously, when she said that she hoped William would see her wearing Kit’s beautiful dress. Either way, it is clear that William is solely attracted to Kit’s looks—he hasn’t had a chance to get to know her yet.