The episode begins with a short recap of Part I: Snake telling Joey about the bet that his brother made; Dwayne telling Mr. Raditch that there's a problem in the cafeteria; Joey walking through the cafeteria nude and being caught by Mr. Raditch; Dwayne on the phone with Penny and finding out that she's HIV-positive and has AIDS.
At the doctor's office, Dwayne gets tested and asks if his parents have to know about it. The doctor says that he's not going to tell, but Dwayne should talk to an adult about this. He adds that Dwayne's in a high-risk category since his friend is positive. Dwayne says that he didn't think that there'd be any problem since Penny was on the pill. The doctor points out that the pill doesn't protect against disease; he draws the blood and tells Dwayne that the test results will be in in two weeks.
BLT and his new girlfriend walk to school; she wants to know when he's going to break up with Michelle. BLT wants some time to do it his own way, and doesn't want to hurt Michelle, but Cindy, his new girlfriend, points out that Michelle's going to be hurt no matter what.
Joey is arranging to pay back the money to the people who bet on him, but he's got a lot people to pay back, and doesn't have all the money. He stops Dwayne and asks for the money that Dwayne owes him, saying that he wouldn't have lost the bet if Dwayne hadn't told Mr. Raditch. Dwayne tells Joey to leave him alone, but Joey insists that Dwayne owes him $314.
Lucy makes more video tapes for LD; she interviews students about their views on the condom machines in the bathrooms. One male student says that he wouldn't use a condom, because stopping in the middle of things would break the mood; Spike, with baby Emma, says that kids are going to have sex no matter what their parents think, and they should be protected against pregnancy and disease.
The Special Ed students go to their sex-ed class where there are two speakers on AIDS. The two men tell the students that when people know you have AIDS, they treat you differently, even if they're doctors. The students ask questions, and the men tell them that they found out pretty quickly who their real friends were, and that a lot of people are ignorant about the disease, thinking that they'll get it if they even touch someone with AIDS. Dwayne asks, "How do you deal with the fact that you're going to die?" The first speaker says that he just concentrates on living today; the other says that he feels it's like living with a chronic illness. The first adds that when he first found out, it was like everything just stopped... Dwayne looks upset, and doesn't appear to be listening.
After class, the students comment that you couldn't tell that the speakers have AIDS just by looking at them. In the bathroom, Dwayne's friend asks when he got so interested in AIDS, and that he didn't know that Dwayne was a 'homo'; Dwayne tells him that you don't have to be a 'homo' to get AIDS, and they start to fight. Dwayne's friend leaves, and Dwayne begins to attack the condom machine on the wall, pulling it down and kicking it; Wheels comes in and sees this, and leaves before Dwayne sees him.
Joey and Snake talk about the car; Wheels tells them about Dwayne beating up the condom machine, and tells Joey that vandalizing school property is serious, and a person on probation could get expelled for that. Joey says that he's compassionate, and won't tell Mr. Raditch... IF Dwayne pays him the money that he owes him. They all laugh that it's blackmail, and that Joey has the car now.
BLT waits for Michelle in the hall; she comes in and kisses him. He tells her, "We have to talk," and takes her into the empty auditorium to talk. He tells her that they've been dating a year and a half, which is a long time, then says that he needs some breathing room. She's upset and confused, asking why, and what she's done, and that she doesn't want to break up. BLT says that he wants to stay friends, but he needs some space and time to think. Michelle asks if there's someone else; BLT says no.
Dwayne goes to his locker, and reads a pamphlet about AIDS. At the walk-in clinic, Dwayne gets the blood-test results from the doctor: it's bad news; he's tested positive for HIV. The doctor tells him that this will mean a lot of changes in his life, but it doesn't necessarily mean that he has AIDS, however, he does have the virus. The doctor continues to tell him some of the things that he'll be facing in the future.
Lucy interviews Mr. Raditch about the condom machines; he says that he agrees with the condom machines being in the bathrooms, but is upset about the vandalism.
Michelle studies in the cafeteria; Alexa comes in and tells Michelle, "You don't want to know." Michelle is confused about this, wanting to know what she doesn't want to know? Alexa starts saying that Michelle has a right to know, and he's a slug; Michelle has her start from the beginning. Alexa tells her that BLT has another girlfriend, Cindy, and he's been dating her for four weeks. She adds that she heard that BLT didn't want to hurt Michelle's feelings, and that Michelle cried like Niagara Falls when he broke up with her. Michelle goes over and confronts BLT about lying, that he told her there was no one else. He claims that he was only trying to be nice and spare her feelings, and she yells at him that he's a liar, and throws his drink in his face.
Dwayne goes into the bathroom as an announcement is made about the vandalism of the condom machines. Joey asks Dwayne about the money that Dwayne owes him; Dwayne tells him not to start. Joey threatens to tell Mr. Raditch that Dwayne is the one who vandalized the condom machine, and that Dwayne will be expelled if he doesn't pay. They start to fight, and Dwayne throws Joey into one of the urinals; Joey hits his head and starts bleeding. Joey punches Dwayne and gives him a bloody nose; Dwayne sees the blood in the mirror and stops fighting, telling Joey to leave, but Joey thinks that he's chickening out and wants to keep on fighting. Dwayne tells him, "Didn't you hear what they said? You're bleeding too... what if I had AIDS?" Joey, not realizing what Dwayne's really saying, just says that if that's the case, he'll be at the funeral, laughing. Dwayne starts yelling at Joey, "Do you think I'd joke if I have it?" He admits that he didn't do anything wrong and that he's going to die, then tells Joey to get out. Dwayne falls to the ground crying.
In the school hallway, Joey explains to Erica why he can't pay her back. He sees Dwayne, who wants to talk. Dwayne tells Joey that he said some things the other day that he didn't mean; he gives Joey the $314 and tells him that the deal is that he pays, and Joey keeps quiet. Joey doesn't want to take the money; Dwayne asks if he's afraid to touch it, or him. Joey takes the money, and Dwayne says, "We have a deal. Tell no one." Snake and Wheels come up, and are happy that Joey has the money, which means that now he can get the car. As he walks away, Dwayne says again, "No one!"