Inside a submarine, Zero announces the re-structuring of the Black Knights. Toudou will be in charge of military affairs while Diethard is responsible public relations, intelligence gathering, and obstacle data. Some people are not happy about this since Diethard is a Britannian and he's also a member of the press. Another person asks Zero if there is a reason why he goes out of his way to appoint a Britannian. Zero points out that he's also not a Japanese and what he really needs is someone who has the ability to bring results. Because of this, a person's race, past, or way of living have nothing to do with this appointment. Zero continues his selection by appointing Ougi as vice-commander, putting Laksharta in charge of technological development, and Karen as the commanding officer of Zero squadron, which will be under Zero's control and is considered his bodyguards. Zero also goes on to announce the 1st, 2nd, and 3rd party captains.
Zero ends this by appointing Tamaki as the commanding officer of the 2nd special service squadron. Karen suddenly realises that C.C doesn't get any specific position but C.C doesn't seem to mind. She then gets distracted when Diethard tells Zero that he has something to discuss with him later on. Meanwhile, Suzaku is attending his Knighting ceremony while the Britannian nobles talk derisively about an Eleven becoming a knight. Suzaku is not the only one who bears the brunt of the snide because they also think that the reason he can become a knight is because Euphemia is reaching her puberty. Inside Ashford college, the two Britannian students who was slapped by Euphemia a few episodes ago also can't believe with this news. I can just see the headline now: "Britannian Princess has torrid affair with a Japanese boy". Anyway, judging from the look in her face, Nina is not exactly happy either seeing Suzaku being so close to Euphemia.
After several oaths and "Yes, Your Highness!", the ceremony is over and Suzaku stands up to a very quiet room. Lloyd tries his best to clap his hands enthusiastically but it's not enough to drown the quietness of the room. Eventually Dalton starts clapping his hands as well although judging from his expression, it's hard to say if he's proud of Suzaku or just plain scheming. Eventually, as if pressured by Dalton's clapping, one by one the nobles start to clap as well. At the same time, Diethard is having a meeting with Zero, Laksharta, Toudou, and Ougi, suggesting that they assasinate Suzaku. Toudou and Ougi opposes the idea since such cowardly method won't win the support of the Japanese people. While contemplating his decision, C.C thinks Lelouch should Geass Suzaku. When Lelouch refuses the idea, C.C wants to know if this is due to his stubbornness, friendship, or pride. Lelouch admits it's all of them.
At the same time, Cornelia scolds her sister for making Suzaku a Knight. She tells her sister that appointing a Knight is the right of the royal family. Euphemia tries to reason by saying that Suzaku is an honorary Britannian who has the ability that makes him fit to be a Knight. In response, Cornelia tells her sister that Britannia has a national policy which differentiates numbers. Not wanting to be outdone, Euphemia swears to change this policy. Cornelia finally puts the harsh words in, reminding Governor-general Euphemia that in order to do that she has to become the Emperor. The Emperor himself is now seen talking to someone about the construction of an elevator. His conversation is interrupted when his guard gives him an update about Schneizel. The Emperor simply smirks and tells the guard to let Schneizel to do what he wants if he has the confidence. Back inside Ashford college, the student council celebrates Suzaku's appointment as a Knight.
During the party, Millay informs Suzaku that the party was actually planned by Nanaly. One person who decides to spit on Suzaku by not attending his party is Nina. Instead she looks at a magazine featuring Euphemia, wondering how she can molests the princess. Just kidding, she actually asks the picture of Euphemia what she should do. All of a sudden, Lloyd comes into her room and becomes intrigued after he notices simulations about a fuel running on her computer. Back at the party, Karen comes prepared with her knife, trying to assasinate Suzaku for Zero's sake. However, before she can do this, Lelouch already stops her by grabbing her hand and telling her that Shirley wants some help. In response, Karen tells Lelouch that she has an important task to do. When Lelouch asks her about this important task, however, Karen can't answer. Suzaku whose ear seems to be sensitive as soon as he hears Lelouch's voice decides to approach the two.
When Lelouch apologises to Suzaku for being late, Shirley looks at Lelouch with apparent anger in her eyes. While Suzaku busy talking to Lelouch, Karen uses the opportunity to get away from the two. Before Lelouch can go after her, Suzaku already asks him about the thing that Lelouch wanted to talk about before. A startled Lelouch tells him that it doesn't matter anymore now. Before they can talk any further, Lloyd appears at the party with Nina, telling Suzaku that unfortunately he has a job coming up soon. Millay herself is surprised to see Lloyd, which in turns causes Nina to be surprised since she wasn't aware that Millay knew Lloyd. Lloyd immediately drops the bomb by saying that he's her fiancee. An pissed-off Rivalz tries to interfere but ends up getting surprised when he finds out that Lloyd is actually an Earl and is Millay's fiancee. Later on inside a boat, Suzaku asks Cecile why they're heading towards Shikinejima.
Unfortunately neither Cecile nor Lloyd knows the reason. Zero, on the other hand, knows that there'll be a meeting between Euphemia and Britannian nobles on the island. However, since the island is not a strategic military base, there is only a minimal military power around the area. Zero who knows about this thinks that this is a good chance to do a surprise attack on Lancelot and capture Suzaku. Toudou immediately gives a light approval smile while Karen is relieved upon hearing this. Zero then goes to confront Diethard for indoctrinating Karen with ideas. Diethard claims that he just asked Karen to investigate Kururugi Suzaku although he did imply a few things to her as well. In response Zero asks Diethard if Diethard has forgotten his instruction to not assasinate Suzaku. Diethard argues the point by saying that what he did wasn't an assasination but applying a hammer of justice. Besides, no one can hide the truth from the media.
Zero becomes suspicious about this and wonders what Diethard real intention. Diethard admits that he's been fascinated with Zero ever since he saw Zero trying to free Suzaku. Ever since then, he wants the chance to film Zero because Zero is the man who created a faction intending to overthrow the government. Diethard believes that sooner or later Zero would rule the world and wants to document this historic moment. In response Zero reminds Diethard that interfering with event is a fabrication not documentation. Diethard claims that there is no information which is not subjective since it's always connected to a person's intention. Zero eventually fed up with the argument and reminds Diethard that he's not in charge of the military affairs. Later on, Euphemia, Suzaku, and the entourage have just arrived on the island when there is an attack in the nearby military base. Karen charge in and opens the pathway for the other members to attack the area.
Meanwhile, Suzaku wants to stay and protect Euphemia but she thinks he should go and help the military base. An officer doesn't trust Suzaku so Lloyd reminds him that questioning Suzaku is similar to criticising the royal family. A few minutes later, Lancelot joins in the fight against the Black Knight and immediately notices Zero standing on a nearby area. Suzaku decides to catch Zero and ends up following the guy into a sandy area which has been equipped by machine called Gefjun Disturber. As soon as Lancelot steps into the machine, Laksharta press the initiate button on the machine, causing Lancelot to stop operating immediately. Zero then asks Suzaku to step out, promising the other guy that he will comply with international laws regarding prisoner of war. At the same time, Euphemia wonders why Lancelot is not moving so Cecile tells her that it's because something interferes with the Sakuradite used in the drive.
Lloyd immediately recognises this as Gefjun Disturber but he didn't expect it to be operational. Because of this, he comes to a conclusion that Laksharta is behind this incident. Meanwhile, Suzaku is out of Lancelot and is now facing Zero who tells him outright that he wants Suzaku to be his ally. Suzaku is immediately acting confrontational by asking Zero if this is a threat and even if it is, he will decline Zero's offer. He reminds Zero that he once told the guy that there is no meaning to results which are obtained through the wrong method. In response Zero asks Suzaku if today's peace is also meaningless. He points out how if the do or die resistance had survived back then, the Chinese Federation and the EU would have intervened and Japan would be divided into three parts which are sill involved in war. In other words, today's peace was achieved due to a quick unconditional surrender. Upon hearing this Suzaku declares that he's fighting now to preserve the peace that his father achieved.
Zero disagrees with this, pointing out that the peace was determined by the person who selfishly killed the minister. Since there was disorder in the government, they had no other choice but to surrender. Zero thinks that the intention of the people were stolen from them by the offender who broke the rules. Suzaku is shocked to hear this so Zero continues the assault by saying that there's only one way to atone for this: by showing everyone the choice that the Japanese could not choose back then. The alternative to this is for Suzaku to force his ego on many people for eternity. He then ends his verbal assault by asking Suzaku if this is really a peace. All of a sudden Suzaku gets a message informing him about incoming missiles and that it's his obligation to keep Zero pinned in one place. While Zero is shocked, Suzaku uses the opportunity to hold Zero as a hostage. Meanwhile, Euphemia tries to stop the attack, reminding the soldiers that Suzaku is her Knight.
When she fails to do this, Euphemia gets into a frame, hoping that her presence in the area would stop the missiles. While this happens, Karen tries to save Zero by jumping into the ditch but Guren Nishiki is immediately powered off due to the Gefjun Disturber. Meanwhile, Suzaku has detained Zero inside his frame while the later tries to remind Suzaku that he will die too. All of a sudden, Suzaku's radio informs him that his death won't be in vain because his story will be told to future generations. At the same time, Toudou tries to stop the missiles by shooting at it while Karen jumps out of her frame, identifying herself as Karen from student council. Inside the frame, Zero tries to encourage Suzaku not to follow order but to think of what he wants. All of a sudden, the area is covered by dark shadows belonging to Schneizel's Avalon. In last ditch-effort to save himself, Zero decides to geass Suzaku seconds before Avalon showers the area with missiles.