Henry is at Granny's, drowning his sorrows in hot chocolate when August joins him at the counter. He knows Henry is upset about his teacher, but tells him he won't find the answer to his problems in the bottom of that mug. These lines read as cloying, but they work on-screen. August suggests Henry should look for the answers in his book.
Henry: It's just a book.
August: Is it? I think we both know that's not the case.
Henry wants to know what August knows about his book. August says it's a book of stories that really happened.
Henry: You think my book is real?
August: As real as I am.
Recapper: Okay, so that's one more check in the August might be the narrator column. I'm thinking that when the curse transported the book to "our world," the narrator's voice gained a body. Anyhow, Henry wants to know how August knows about the book. August says he's a believer who wants to help others see the light. He's here for Emma. She's not one who can go on faith; she needs proof. August again points Henry toward his book. As he opens it to a picture of Charming on his horse, we cut to the...
Enchanted Forest, day. Charming comes upon the poor, naked knight. In another amusing scene, he tells the knight to put his hands where he can see him. When he realizes the guy is naked, Charming quickly rescinds that order and tosses the knight a blanket. The knight tells Charming what Snow White did to him and that she's a bloodthirsty killer after the Queen. Charming says she's not bloodthirsty. He knows her. The knight replies that maybe he doesn't.
Storybrooke. David visits Regina in her office. He knows she didn't kill Kathryn. Regina says she's knows what it's like to be betrayed. David insists Mary is a good person; he knows her. Regina, echoing the knight, says maybe he doesn't really know her. She goes on about everyone having a dark side. David agrees, but says this is so evil. Regina says evil isn't born; it's made, and then manages to keep a straight face when David says he hardly thinks Regina knows much about evil. Then again, Regina probably doesn't think of herself as evil -- just as right. David brings up his blackouts. He wants to clear up his missing time and prove Mary Margaret's innocence. Regina tells him he is sweet but wrong.