We see what looks like home-video footage, as Kathryn explains that Jim is cutting his hair. He hands Kathryn the clippers and she starts the shave his hairline in the back. He tells her not to "go into the hairline at all," as we see that she already has. Oops! She laughs and tells him.
Anderson voice-overs that the players were given the morning off to window-shop and relax. In an interview, Kathryn says that you start to think you're making friends and you let your guard down, and people prey on that, so she has to remember that she can't trust anyone here. Kathryn says that when she tries to sleep at night, she has strategy going in her head, but she wants to be able to trust someone "for a few minutes." We see Jim and Kathryn talking alone. In an interview, Steven says that Jim could definitely have a coalition with someone else, but Steven promised he wouldn't betray him. In an interview, Jim says that the players are "much more sensitive" about two people going off alone. We see that Steven and Charlie have joined Kathryn and Jim's little conference.
Anderson invites everyone up to a rooftop, because it's time for another test. Before it begins, they each need to make a list with the player they would most like to see executed at the top, and the player they would like to stick around most at the bottom. I'm guessing that they are to exclude themselves from the list. They are to go off and make their lists, and then stick the paper with the names in a vase on the roof. We see each player thinking and writing down names. Anderson voice-overs that the players might not want to reveal this information in case it is used against them. We see each player walking up to the roof and putting a paper in the vase. It's all dramatic with fades in and out and stuff. I think the editors were bored.