After the commercial break, Walter struggles to hold onto a sinking Peter whilst trying to break through the ice up top. Peter slips from his grasp and descends through the completely crystal-clear lake water, and Walter loses consciousness. Someone else plunges through the water and heads for Peter, while Walter floats into blackness.
When he comes to, he's in the passenger seat of a car being driven by the Observer. Walter groggily looks around, sees Peter sleeping in the backseat. He asks Michael Stipe over there if Peter's OK, but the Observer doesn't say. "Who are you?" asks Walter. As does the Observer. At the same time. "You're the man I saw, in the lab, on the other side," says Walter. As does the Observer. AT THE SAME TIME. Man, for dudes whose goal is to secretly observe major world events, you'd think they'd tamp down some of their more annoying and memorable habits.
The Observer explains that Walter's friend and the one who was injured left to seek medical attention. As for Peter, he won't live much longer. "You must fix him. Your lab is six miles from here. Can you drive?" He sounds like HAL in 2001. Walter figures he can, so the Observer pulls over. "Why did you save us?" asks Walter. "The boy is important. He has to live," says the Observer, and gets out of the car. By the time Walter gets out and comes around the hood of the car, the Observer's nowhere to be seen. Walter squeals the tires as he peels the shaggin' wagon out of there...
Over at the lab, Walter's on an IV drip of the blue magic, and Carla's already been brought up to speed. She comes in to say she just got off the phone with the hospital: "Dr. Bell called in a team of specialists. He has some thoughts on Nina's arm," she says. Walter thanks her for coming in to help with Peter - who's starting to get his colour back -- after everything that's happened. And just as you're thinking, "Well, how could she possibly be OK with this," she confirms with Walter that he's going to bring Peter back. Yes, says Walter, once he's stabilized. I think here it's killing Walter to know that he has to, but that he does indeed plan to.