According to him (my friend, that is), it would depend on how many cheated (if any).
If one woman cheated, then one man (her husband) on the island doesn't know about it. Since he knows of nobody, she gets hanged at midnight. If two women cheated, then two men (their husbands) know about the other woman cheating. So in the morning, they would expect to see that other woman hanging. Since nobody is, they must conclude that more than one woman is cheating. Since they only know about one, two women get hanged that night.
If the missionary was just lying for his own amusement (or for whatever reason) and nobody was cheating, then every married man in the village would show up that night to hang his wife. They would, of course, see everybody else there and everyone would reassure each other that no cheating was happening. And, very probably, the next missionary to visit would be hanged instead.
