Dr. Thredson has had Kit brought to him in a straitjacket and while Kit is defiant in his refusal to tell Dr. Ollie where the recordings are, Thredson does have his number. Referencing Kit's twin martyr-and-savior complexes, he's pretty sure Kit will give him what he wants in order to save a damsel in distress. So he opens the door of his office to reveal Grace and her baby, alive and well. Pepper's there too, though I do have to wonder why the protective and newly worldly Pepper would allow Grace to be co-opted by someone such as Thredson. Clearly, the aliens must know what he's up to as well. Anyway. Kit's as credulous about this whole scenario as you would expect him to be, spending about three seconds goggling at the site of his deceased ladyfriend before wholeheartedly accepting both her return and her claim that the baby is his. Grace, by the way, continues to be blissed out and vague in that post-alien way that makes me think she may not be fully "alive" in the human sense of it. Thredson's quid pro quo for Kit is pretty obvious: tell him where the recordings are and he gets to stay with his lady and child.
Did you think for one second that Kit wouldn't give up those recordings? You idiot. Next thing we know, Thredson's storming the hydrotherapy room and checking underneath the tell-tale tub. What he finds wrapped up in that towel, however, isn't a reel but a children's book: "See Spot Jump." Clever, Lana. Poetic. I have no idea if this scheme was a Lana/Kit co-production or if Lana ultimately figured Kit couldn't be trusted not to give the farm away (either is plausible), but either way, she shows up in the hydrotherapy room to gloat. "Where is the tape, you bitch?" Thredson demands, with all the Quinto-esque unintentional hilarity he can muster. He rounds back to strike her, but she's got a whole mess of trump cards. She tells him only she knows where the recording is now and if any harm comes to Kit or anyone else, she'll find a way to get it to the police. "You know I can do it," she tells him, gaze unblinking. "I'm goddamn plucky." God, compare the backspin Sarah Paulson puts on that line to Quinto's shrill "you bitch" line. She's blowing him out of the water.