After the commercial break, over on Liberty Island, Lee has apparently just filled in Walternate on what they learned from Henry Higgins. "And all this from a cab driver," says Walternate quietly. Lee says yes, and then adds that if there's any truth to what Higgins is saying, it could be a lead: "I need to know. Was our Agent Dunham replaced with theirs?" Walternate, who'd been facing away from him, looking out the window, turns and slowly walks towards Lee, taking a full 15 seconds to answer: "She was. Yes. And during that time, our Agent Dunham infiltrated their Fringe Division." Lee swallows, looking a little surprised by both the answer and Walternate's frankness. But still, he manages to summon up enough courage to say he wishes he had been told sooner.

Walternate says Lee wasn't told because it was classified, and he tells Lee that each Olivia was returned to her proper universe weeks ago (although he fudges it when he says that our Olivia was sent home instead of escaping). Sitting down heavily in his chair, he says he's starting to think that not sharing this information may hinder Lee's ability to find Fauxlivia and then quietly spills the beans about Fauxlivia carrying his grandchild. Lee wisely says nothing. Not even a "Congratulations, sir!" Walternate explains that getting knocked up wasn't part of the mission, but while she was on the other side, Fauxlivia and his son got close. Yeah, that's one way of putting it. "I believed the child and Olivia would be safer if no one knew the truth." Lee, looking completely stunned, asks who else knows about it. "As far as I know, just Fauxlivia and I," says Walternate, and then Lee asks what is an entirely logical question, knowing what he knows, for him to ask: Does Walternate think Fauxlivia might have been taken by invaders from the other side?

Walternate says it's possible, or it may be, as Lee already suggested, an inside job: "None of us is without enemies," he says. Aww, who doesn't like Lee or Charlie? Or Agent Farnsworth? Speak for yourself, Walternate.

Actually, Lee does see through that and asks if Walternate is suggesting this is about him. Walternate, looking like he might break down, steels himself and tells Lee that his son was taken from him, and the idea that he might lose his future grandchild is impossible: "I will answer your questions. I will give you complete access to Fauxlivia's mission files. Whatever it takes, find her." Typically strong performance by John Noble, and by Walternate, as it turns out. I'd spoiler-alert that, only I didn't think it was all that huge a surprise. Anyway, Lee promises to do his best, blah blah blah.