Minding the two other storylines, the focus of this episode, of course, is the building tension in Ross and Rachel's relationship, specifically Ross bringing the dinner to Rachel's office despite her wishes for him not to. The fact that Ross didn't feel he had to apologize shows a difference between men and women - such that he felt he wasn't at fault for doing a nice thing. What matters to Rachel, though, is that Ross respects her wishes and listens to her needs, which he doesn't always do. The fact that Rachel wants to "take a break" is understandable, as Ross can be a little too caring and smothering at times, not giving Rachel enough room to breathe. So instead of Ross interpreting "taking a break" as backing off on his affection, he believes that Rachel wants to break up, which she obviously does not want to do. It is unfortunate that Ross does not see his fault in this as well, because if he did, his sleeping with Chloe at the end may not have ever happened.
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