Alas, before they can reach the floating cracker box, a boat full of Loyalists pulls up alongside the dock. Peter tries to act all casual and pretend like they're just headed out to visit his uncle, but a Loyalist toady demands to see his papers. Peter's like, "Oh, sure, my papers," and whips out a gun. I guess the show felt like this episode was lacking in action, so a gunfight ensues. The Loyalists are terrible shots, as is customary with most television baddies. They can't even hit Astrid and Walter, who are sitting perfectly still in the boat. Olivia and Peter kill off all the Loyalists and hop onto the boat. Meanwhile, the guy that rented it to them is probably like, "Damn, I should have asked for more money."

The cracker box manages to get them to the island, where the team resumes its search for the signal. Walter seems rather happy until he sees Carla hasn't left him. He leans on Astrid for support and tries his best to ignore his dead lab assistant. Anil's tracker leads them to a nice little house somewhere inland. A transmitter is visible in the window. When Olivia walks up to the house, a gray-haired gentleman steps out and raises a rifle. He demands to know what they all want. "We're here to meet Donald," Olivia says. "There's no Donald here," the man says. He says he doesn't recognize Walter when Peter asks. A bald boy walks out of the house, much to the team's amazement. "Astrid, do you see him?" Walter asks. "The child Observer!" The child doesn't say anything.

"Richard," calls a woman from inside the house. The man with the rifle answers back, telling "Caroline" that he has everything under control. She comes out to put a protective arm around the young Observer. Olivia pleads their case to this Caroline, who proves to be more receptive than Richard. She tells him to put his gun down. "Richard, we knew this day could happen... that someday, someone would come for him." Richard keeps his gun at the ready and demands the newcomers tell him the password that was hidden in the radio signal. Unfortunately, the team wasn't able to decode the message, so they seem pretty screwed.