It's time for the lie detector scene. Oliver answers "Is your name Oliver Queen?" with "You don't know who I am, detective?" Just answer the questions, dummy. Detective Lance holds up the sketch of the Hood and asks, "Are you the man in this picture?" Oliver flashes back to the tent, when he was asked, "Where can I find the man in this picture?" Anyway, he denies being the Hood. He also denies stealing 40 million dollars from Adam Hunt.
Five years earlier, Deathstroke sticks the katana into Oliver. Ouch!
At the polygraph test, Oliver admits that the scar tissue happened on the island because he wasn't really alone. He says that the people that were there tortured him. The next question is, "Have you killed anyone?" Long pause. "Yes. When I asked your daughter Sara to come on my father's yacht with me. I killed your daughter." Then Oliver pulls off the wires and leaves. I don't think you can get a great polygraph read on someone with only four questions. But the polygraph tech says he's probably telling the truth. So I guess one of the things Oliver learned on that island was how to beat lie detectors! Laurel asks if her father will be recommending all charges be dropped. Detective Lance says he can see a guilty man when he sees one. So the polygraph test served no actual purpose? Great! And hey, what about all that actual evidence against him? Has anybody tried to see if Oliver has an alibi for any of the things he's accused of?
And now: a party! It's not really "Burning Man meets Shawshank Redemption" so much as a bunch of people dressed in vaguely prison-themed outfits and a couple of people dancing in cages. This party could have been much darker. Oliver thanks everyone for coming to see him before he gets sent "up the river." Everyone's delighted! All these people are pretty confident he's not a murderer, I guess.
Dig pulls Oliver aside. The tracking device says that Mueller's car is parked somewhere, so they decide he's about to make an arms deal. Dig finally realizes that he's supposed to go pretend to be the Hood. Oliver's plan was for Dig to just make an appearance, but now that there's a bad guy, he has to get involved in a more personal way. Dig tells Oliver not to lie to him. Oliver apologizes. Dig says Oliver isn't going to jail: "I got to stop an arms deal."