At the main base - New Edwards Airfield as it is called - the Gundam pilots are scrambling around attacking what they can. Lady Une then tells her men there to detonate all of the nuclear (or otherwise) missiles at the base and blow everything up so that the Gundams are completely consumed. Indeed, everything within a 180 mile radius would be demolished with such an explosion.
Before Lady Une's henchman can push the button for self-destruct however, Major Sally of the Federation forces busts in. She has two soldiers with her who tell the henchman not to proceed. He pushes the button anyway and Major Sally ties him up and calls out to Heero's Gundam (she remembers him from the hospital), telling him about the self-destructing missiles. Heero jumps out of his Gundam and goes underground to where the missiles are stored. He then stops the sequence as only 1-2 seconds remain. Heero, and the rest of the Gundam pilots, then take off.
In the next scene we see Lady Une talking with Colonel Treize. The Lady informs Treize of her failure to destroy the Gundams but Treize is happy - he would have hated for such a great area of the Earth to be destroyed just for the Gundams and even thanks them. He also tells Lady Une that she should learn more about OZ - insinuating that they are not as evil as she might interpret them to be.
We are transported merrily to the Federation's European Headquarters. We see that the commander inside, Lt. General Diego O'Neguil refuses to surrender to OZ. He boasts on how perfect the defenses of the headquarters all. All of a sudden, Zechs walks right into his office. Zechs is holding a pistol and we learn some interesting backstory. We learn that the Federation - with Diego's help - attacked and destroyed the Peacecraft royal family and its home - the Sanc Kingdom - leaving only two survivors: Relena and Zechs himself. Zechs shoots the Lt. General, taking vengeance.
The next scene shows a fleet of ships on the water. One of the ships has Lady Une in it while the other has Colonal Treize. Une is thinking about the words Treize said to her earlier when all of a sudden, two cargo planes crash into two battleships. From their wreckage, the Gundams of Trowa Barton and Chang Wufei emerge. Trowa's Gundam is knocked underwater while WuFei's is engaged by Lady Une herself (she doesn't want WuFei to get to the Colonal). Chang Wufei defeats Lady Une and is challenged to a hand-to-hand duel with the Colonel.
Chang Wufei, being the honor-bound person he is, gets out of his mobile suit and fights the Colonel in sword-to-sword combat. He is defeated and wants to die but the Colonel spares him. WuFei boards his Gundam again, distraught at his failure, then jumps into the Ocean.
The episode ends with a shot of Trowa looking at WuFei as he is sinking, both mentally and literally.