Walter moves over to a microscope in the lab to examine the sample, and Olivia tells Peter that she's glad he's here; not just for her, but for Walter, who was more shut-down and isolated before Peter arrived. Peter says this Walter is a lot like his Walter, which prompts Olivia to ask the obvious question: "What's she like?" and she has to clarify for a clueless Peter that she's talking about the other Olivia. Peter, a little awkwardly, explains that she's very driven, stubborn, and doesn't like to lose. She also sees the best in people, even when they don't see it themselves. "When she first found me, I was in Baghdad trying to run a scam on these two Iranian businessmen," he says. Olivia seems surprised by the admission, and tells Peter she didn't picture him as the scamming type. "That's what made me so good at it," he points out. Peter fills in some of the broad strokes, about how the other Olivia just needed him to babysit Walter while he was working on a case for the FBI, and then after it was done he could go back to his own life. "Despite, of course, how gorgeous she is," he says. Nice job saying that after revealing what a scam artist you used to be, Peter. Olivia compliments his good taste, and then Peter gets serious and says Olivia gave her something that he hadn't had since his mom died, and you get a little concerned about what he's going to say next, but it's just that Olivia gave him a place to call home, and eventually they had their own thing: "A routine, you know? On Friday nights, we'd get together. We'd watch cheesy horror films and order in from Damiano's." Olivia says knows the place, so you get some idea where this is going to go.
Olivia says the other Olivia is lucky to have Peter, and then their tender moment is interrupted by someone screaming. They rush off to a bathroom, where Angela has found Teresa dead on the floor, apparently after slashing her wrists. Later, as they cover her up -- Teresa now has double irises -- Cliff says he doesn't understand; she was fine when they got here. "If it happened to her, what's to say it's not gonna happen to the rest of us, and why hasn't anybody come?" he asks. Olivia refrains from telling him it's even happening to one of the FBI agents that IS already here, and just says that they'll all be OK. They just need to figure out what's happening and how to get out. Oh, is that all? How's that going for you so far?
Then Cliff starts lamenting not taking a teaching job in Philadelphia that he was offered last fall, like his wife wanted him to do. He convinced her to stay, because deep down he was scared to leave the town that was all he'd ever known. But if he'd done that, his family would be alive today. Olivia says that if it weren't for him, his family might not have made it as far as they have. I'm not sure how that trumps what he said, but before they can discuss it further, Walter's voice crackles over the loudspeaker, summoning Olivia and Peter to the biology lab.