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Hanzee sits in the woods petting a rabbit. He recalls a childhood memory of watching a magician pull a rabbit out of a hat in a classroom. He kills the rabbit offscreen and brings it back to the house.

Floyd, Bear, Dodd and Otto meet with their associates to discuss the offer from the Kansas City mafia. Dodd emphasizes wanting to fight the KC guys off and refusing to back down or be cowed. Floyd declares that she is not afraid of a war, but wants it to be a last resort. She asks whether the associates are with her. The associates confirm that they won't make the first move, but will defend the Gerhardts if the KC folks come after them.

At the Pearl Hotel, Joe Bulo has breakfast. He is joined by Mike, who is late because he couldn't get the shampoo out of his hair. Joe suggests a certain type of shampoo. Joe updates Mike on the situation: Floyd has yet to give him an answer. Research suggests to Joe that the Gerhardts will stall and then decline the offer. Mike is ready to start killing people, but Joe says that they will be told whether to start killing or to up the offer. Mike debriefs Joe on Rye's crimes and subsequent disappearance. Joe emphasizes the importance of Mike tracking down Rye before anyone else does, so Rye can be used as leverage against Floyd.

Lou is en route to Fargo to see about the murdered Judge's case load, to see if there is something there that can be connected to the crime. Hank radios Lou to tell him that there was a match on the gun that Betsy found at the crime scene -- the prints belong to Rye Gerhardt. Hank tells Lou who Rye is. Lou says he will talk to the Fargo PD about it and asks Hank to tell Betsy that he (Lou) will be home late.

Lou meets Ben Schmidt outside of the Judge's chambers. Forensics is going over the judge's chambers. Ben suggests that he might go down to take a look at the crime scene. Lou says that's fine, but he can provide very detailed photographs. He also tells Ben that they just got prints off the gun and that it belongs to Rye Gerhardt. Ben reacts strongly, suggesting that Lou would be better off if his own prints were on the gun rather than getting mixed up with the Gerhardts. He tells Lou about the family's crime history and how Otto was ever worse than his father Dieter. Lou asks Ben if he knows who Mike Milligan or the Kitchen brothers are. Ben says he does not. Ben asks Lou about his military service and they chat about it. Ben again emphasizes that he'd be better off confessing to the crime and going to jail himself.

At the Gerhardt house, Hanzee works on the dead rabbit and asks Dodd's daughter about whether Rye had a place of his own in town. She at first claims that she doesn't know but quickly admits that she's been there, with a boy or to score some weed. She teases Hanzee a bit, saying that they are all squares.

Hank looks over photos from the investigation, the shoe he found in the tree, and Rye's wanted for murder poster.

Betsy goes to the salon where Peggy works, where Connie does her hair and they discuss the possibility of Betsy losing her hair from chemo. Peggy tells Connie that she's decided to go to the seminar and that she didn't ask Ed. Hank arrives, asking Connie if he can put up one of the wanted posters in the window. Hank and Betsy discuss the crime and Betsy suggests that she has a theory: that Rye wandered out into the road and got hit by a car. Peggy interrupts to say that it doesn't make sense why the motorist wouldn't have stopped. Hank agrees with Peggy. Betsy says that maybe instead of looking for a man they should be looking for a car.

Peggy, panicking, goes to retrieve Ed from work, telling him that they need to take care of the car right then. They spot Rye's wanted poster in the window and both drop silent.

Back at home, Betsy cooks dinner as little Molly watches Operation: Eagle's Nest

Lou and Ben spot Skip the typewriter salesman (and Rye's partner) freaking out outside the judge's chambers and follow him out to his car where they confront him. He admits that he was there for his hearing on his tax issue that was postponed. He continues to act very "squirrely" and Lou wants to bring him in but Ben tells him they can't bring in every squirrely person from the Judge's cases, so they let him go. Lou suggests going to the Gerhardts and Ben reluctantly agrees.

Skip goes to Rye's apartment to look for him and finds Simone and Hanzee there instead. Simone guesses that he was Rye's partner. Skip tries to say that he just came to the apartment to pay Rye back, or to tell him he planned on paying him back because he didn't actually have the money on him. They force him to accompany them and leave the apartment to go have "some fun."

Peggy comes up with a plan for Ed to crash the car so they can cover-up the true cause of the car damage. They drive the car several hours away and Ed crashes the car. Unfortunately, the first time he hits black ice and skids, hitting the back of the car on the tree instead of the front. He gets it right the first time. He gets whiplash in the process and Peggy criticizes that he got it wrong the first time. Their car is towed and they leave.

Bear talks to his son Charlie about Floyd's plan to sell only a piece of the business to the Kansas City mafia. Charlie tries to insist on being included in the family business, but Bear insists that he stay out of it due to a promise he made Charlie's mother to get him educated so he can make a better life for himself. He tells Charlie that Floyd agrees.

Lou and Ben drive to the Gerhardt home. The guards try to take their guns, but Lou refuses to hand over his. Floyd speaks with Ben familiarly, asking after his mother. Lou tries to be straightforward with Floyd while Ben is more deferential to the older woman. She tells them to leave after Ben gently tells her that they need to speak with Rye. Dodd arrives and faces off with Lou, who asks Dodd where he can find Mike Milligan, mentioning that Milligan is after Rye, too. Floyd kicks them off the property.

As they drive away, Lou suggests that they get a warrant, while Ben wonders which judge would give them a warrant when the Gerhardt's own most of the town. Lou has Ben pull over and goes into the typewriter store to talk again with Skip. Ben declines and leaves.

Lou enters the shop and finds Mike Milligan and the Kitchen brothers there; the other three men had been looking for Skip. Mike asks Lou where the owner is, offering to bribe him, and Lou says he was going to ask him the same. The Kitchen brothers each pull a shotgun on Lou. After a tense stand-off (in which Lou makes a crude joke about Mike's mother), Milligan and the brothers leave the store.

A stranger at the gas station tries to talk to Lou about alien sightings, visitations and odd occurrences tied to the same. Lou brushes it off and leaves the gas station.

Peggy and Ed sit on the bus on the way home after the escapade with the car. Peggy insists that the plan worked, while Ed wonders how she can be so sure.

Lou returns home where he finds Hank hanging out with Peggy, playing a card game. He tells Hank about his experiences in Fargo and the stand-off with Milligan.

Dodd joins Simone and Hanzee where they have taken Skip, out near the pit. Simone tries to participate in the intimidation but Dodd demands she get back in the car, insulting her manner of dress and hitting her before shoving her violently back in the car after she makes a comment about hitting her getting Dodd "hard." Dodd confronts Skip, asking where Rye is. Skip denies any knowledge of Rye's whereabouts. Dodd mentions that Skip talked to the cops and Hanzee tells Skip to get in the already-dug grave. Skip tries to bargain for his life, mentioning that he can find Rye if they give him a few days. As a last ditch effort, Skip tells Dodd to talk to Milligan, suggesting that Milligan found Rye after having come over the other day looking for the youngest Gerhardt. Dodd says that Skip doesn't know anything and has a pile of manure dumped on him, smothering him. Dodd orders Hanzee to go to Luverne to find Rye, and tells him to kill anyone who gets in his way.

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Fargo Season 2 Episode 3 Quotes

Bear: Know thyself?
Dodd: What are you on about?
Bear: It's in the Bible.

[about Otto] He's still the same lion inside.