At school a teacher yells at Suzaku and Lelouch for their poor attendance, noting that they’ll have to repeat the grade if they don’t shape up. On the Black Knights submarine, members discuss Zero’s idea to create an independent country, and Tamaki says he supports the idea because it could make his dream of being a bureaucrat come true. He tells them their lives will change if they follow Zero and reveals that he’d probably be abusing Refrain if he hadn’t joined the Black Knights. Back at school, Milly makes an announcement on the loudspeaker to welcome everyone to the school festival. Lelouch stands on the rooftop and discusses his plans on the phone with Diethard. They’ve obtained diagrams of solar panel locations in the settlement, and Tohdoh is examining the areas Lelouch wants to capture. Diethard is about to say something regarding Ohgi, but Lelouch cuts off the conversation when Milly approaches. Lelouch mentions that they did fine with a two meter pizza last year and asks why suddenly it has to be 12 meters this year. Ohgi walks along a street with Viletta and asks her if she’s ok walking with an Eleven from a ghetto. He wonders what he’s doing and thinks about getting rid of Viletta by sending her to the police or a hospital. They stop by the academy, and he says he feels nostalgic because he used to be a teacher. Viletta asks why he quit, and he explains that he wants to fulfill the dream of a childhood friend who died. Suzaku chops onions, and Kallen approaches him with her pouch knife drawn. She asks him why he didn’t reveal her true identity, and he answers that right now she’s Kallen Stadtfeld. On the battlefield he won’t show mercy, but in school he wants to try to convince her of other ways. Lelouch then walks in and asks Kallen for help, and she’s later annoyed to discover that she’s been recruited as a monster for a horror house. Kallen jumps out of her grave to scare the next couple and is surprised to see Ohgi and Viletta. Cecile plays a game of student whack-a-mole, but she only whacks a student who resembles Lloyd. Lelouch is annoyed that he doesn’t have time to plan for his coup, and suddenly Cecile’s hammer bonks him on the head. C.C. then asks him where she can eat the world’s largest pizza. Elsewhere, Cornelia meets with Schneizel and thanks him for returning with the elite Glaston Knights. Schneizel says he’s happy that Cornelia needs him, which embarrasses her. In a storeroom, Lelouch chastises C.C. for going out in public. Kallen then walks in with Ohgi and Viletta, asking who Viletta is. Lelouch then comes out to say the room is off limits and is surprised to see Ohgi. An incognito Euphemia searches for Suzaku at the festival so that she can tell him about her plan, which Schneizel approved of. She’s surprised when she suddenly runs into Nunnally and Sayoko.
Lelouch and Kallen each think about what to do when Suzaku and Shirley walk in. C.C. suggests using Geass, but Lelouch says he doesn’t want to use it on Ohgi and the unknown woman, and everyone else in the room has already been subject to its power. Shirley wants to talk to Lelouch, but he says he’s busy. Kallen cuts a strap on a board to make it fall and create a distraction, and Lelouch sets off a gas cylinder that unleashes a cloud of pink smoke. Kallen jumps on Shirley to save her, and Lelouch and Suzaku hold up a board, even though Arthur is biting Suzaku’s leg. Outside, Ohgi apologizes to Viletta, but she tells him it’s ok. Ohgi tells Viletta she should leave Area 11 so that the person who shot her doesn’t chase her. She asks him what she means to him and says she wouldn’t mind becoming an Eleven. At the clubhouse Euphemia and Nunnally drink tea and reminisce about arguing which one would marry Lelouch. Rivalz stands atop the large custom oven and declares that they’ll make the world’s largest pizza soon. Lelouch talks with Milly in the control room, but he runs off when he sees Nunnally arrive with Euphemia. Rivalz announces that the pizza will be made by the Ashford family’s old prototype Knightmare Ganymede, piloted by Suzaku. Lloyd comments to Milly about how the Ganymede was used by Marianne, who was renowned for her piloting skill. Kallen is surprised to see Elevens in the crowd, and Sayoko explains that they’ve come to see Suzaku because he’s their star of hope. Suzaku uses the Ganymede to toss the pizza dough. Euphemia says she’s surprised that Lelouch and Nunnally were so close by and friends with Suzaku. Lelouch says this will be the last time they meet, but Euphemia tells him she has a good plan. An angry Shirley begins to approach Lelouch, but a sudden gust of wind blows away Euphemia’s hat and reveals her identity. Lelouch escapes with Nunnally as the crowd rushes over. Suzaku accidentally tosses the pizza dough into a tree. Cecile and the bodyguards attempt to keep the crowd away, and Suzaku uses the Ganymede to lift Euphemia to safety. Hiding inside a crepe stand, Nunnally tells Lelouch that things are going well between Euphemia and Suzaku because they suit each other. Reporters ask Euphemia for a comment, and she says she has an announcement to make. She declares the creation of a Specially Administrated Zone of Japan around Mount Fuji, where residents can call themselves Japanese and live equally with Britannians. She calls out Zero and asks him to create a new peace with her inside Britannia. Lelouch is furious because this announcement destroys the reason the Black Knights exist.
It’s time for some more school antics, but with a twist. Since there’s not much going on in this episode, we see some bits about various characters. Tamaki is very rough around the edges and quite annoying, but he reveals that Zero has had a positive effect on his life. We also learn that Ohgi used to be a teacher, and the dead friend he’s referring to is obviously Kallen’s brother, Naoto. Viletta’s new personality is definitely a 180 from her old self, as she’s now happy to live as an Eleven. There’s some other tidbits, such as Jeremiah briefly showing up inside some tank, and Sayoko secretly working for Diethard. I’m sure he’s still following up on Viletta’s old lead about Zero being connected to Ashford. This episode is also filled with a series of chance encounters involving C.C., Ohgi, Viletta and Euphemia. Shirley clearly wants to talk to Lelouch about that letter, but she doesn’t get a chance since Euphemia makes her big announcement about the Specially Administrated Zone, which certainly steals the thunder from the Black Knights.