  Let (S,H) be a polarized K3 surface, $E$ be a coherent sheaf on S and W be a
linear subspace in the space of global sections H^0(S,E). If we are lucky,
there is an exact sequence 0 -> W tensor O -> E -> E' -> 0, which gives a
correspondence between moduli spaces of sheaves of different ranks on S. We
used this correspondence in the first part of the paper in order to establish
some properties of Brill-Noether loci in the moduli spaces. We allow E to be
either locally free, torsion free of rank one, or a line bundle with support on
a curve, thus studying simultaneously Brill-Noether special vector bundles,
special 0-cycles and special linear systems on curves. To complete the work
begun in the Part 1, we need to establish a number of properties of this
correspondence. In this paper we prove that it behaves nicely for globally
generated vector bundles, establish the existence of globally generated vector
bundles in moduli spaces on K3, and prove that the correspondence preserves
stability if Pic S = Z c_1(E), thus completing the work started in Part 1.
