Chef and Uncle Jimbo are on opposite sides of the issue of South Park's flag, which features 4 white stick figures hanging one black stick figure. The boy's substitute teacher, Mr. Wyland, suggests that the children research this issue so they can be prepared to debate the issue. The boys ask Uncle Jimbo and Ned for some background on the flag. Chef searches for supporters for his cause and everyone just seems to want to avoid the issue. Back at school, Mr. Wyland selects volunteers to lead the pro-change and stay the same positions for the flag debate. Kyle and Stan both volunteer to head up the team for not changing the flag, much to the annoyance of Chef, who has converted to Islam and changed his name to Abdul Mohammed Jabar-Rouf Kareem Ali. Wendy and Cartman head up the side for changing the flag, although Cartman's initial participation is useless. Outside city hall, the protesters have gathered, both for and against. Uncle Jimbo declines help from the KKK (who have Mr. Hand as a member), saying the issue isn't about race, it's about history.
The mayor decides to use the children's school debate as a way to disconnect herself politically from the whole flag issue. Wendy tries to do research, but still gets no help from Cartman. Uncle Jimbo decides he has to do something to distract the KKK and keep them from participating in the flag debate. When Cartman finally starts participating in the research for their debate, Wendy finds that it is turning her onto the point of distraction. Uncle Jimbo and Ned infiltrate the KKK and convince them to change their position to the "change the flag" position, assuming that people will vote the opposite way. The KKK goes for it and then they play their "who's got the silliest thing on under their robe game." When Abdul Mohammed Jabar-Rouf Kareem Ali sees Uncle Jimbo and Ned in their KKK robes, he decides that he's had with this whole "cracker-ass town."
Wendy confesses to Bebe of her attraction to Cartman and Bebe tells her it will keep distracting her until she acts on her feelings. The debate starts, but before Wendy can make her first point, she kisses Cartman to regain her composure, which sends Stan into shock. Kyle then makes their point, which angers Abdul Mohammed Jabar-Rouf Kareem Ali; but then he realizes that Stan & Kyle's point of view on the flag issue was colorblind, the boys only thought it represented killing, which from their point of view happens all the time.
The town eventually comes to colorful solution to the flag problem. Meanwhile Wendy may have regained her composure and her interest in Stan but she's stirred up other feelings in Cartman.
Kenny dies when he explodes after eating 60 antacid tablets and then drinking water.