Through out the whole second season we have been seeing a lot more build up towards Jess and Nick having a relationship and this episode is a big stepping stone for the two. Pretty much ever since "Fluffer" we have been seeing more and more that these two depending on each other (in this episode it kind of goes to an extreme where Jess needs Nick to the point where she makes a dummy version of him). But this is the episode where it really shows that these two have a thing for each other.
Also this episode includes another game of True American with Clinton rules in place (aka strip true american), and because Jess has been Nicks cooler and has been preventing him from getting girls she tries to help him get this girl named Holly but it back fires on them and they get put in a situation where inorder to continue the game they must kiss each other (which gives us some of the most awkward and funny moments ever)
If you are a Jess and Nick fan then this is a must watch. But by far the best scene happens in the last 2 min of the episode.