I have always been faithful to her. I have never strayed from her
umm... how does this go with the fact that you cheated on her? (you even mentioned that in the subject line of this thread.) just because it was "only" a one-night stand, you consider yourself as having "always been faithful"? well, news flash! for a lot of women, a one-night stand is just as bad as any other kind of cheating, because it's a matter of principle. it completely overturns her ability to trust you.
the question is - do you want to remain married to your wife?
if so, she basically has two very-reasonable requests.
first of all, she wants some kind of guarantee that you will not cheat again. don't you think she is justified in requesting that, in view of your history and behavior?
and, she wants to have a second child; in fact, she wants to have *your* child. your genes. I would think that would be extremely flattering. but instead you are saying that since *you* already have other kids, you don't care about *her* desire for a child. do you think that is fair to her, to deny her a second child just because you have other kids? it would be like going into a restaurant with her, when you've already eaten and she hasn't, and saying, "let's not order anything because *I've* already eaten."
being married means caring about your spouse's needs. and the desire for a child is one of the most important things to almost every woman. ok, there are a few women who don't care about having kids, but your wife told you how she felt about this before you even got married.
so you need to decide whether she is important enough to you for you to grant her these two requests: to allow her to have a second child without divorcing you, and to find a way to guarantee that you won't cheat again. it's up to you.