Damon lets Alaric falls to the floor and then goes to freshen his drink. He returns to the sofa and sits and watches the fire. Alaric's death scene doesn't obstruct his view, because he's lying on the floor, like a bearskin rug.
When Stefan comes home and looks around, he asks his brother what happened. "What did you do?" Damon explains that Alaric attacked him and insists that all he did was tell Alaric the truth. "It's not my fault he couldn't handle it." Stefan looks a Damon. "Like you've been handling Katherine." Hee. Damon says he's doing just fine. He gives Stefan Isobel's backstory -- that she found him. "And if she's related to Elena, that means she's related to Katherine. Maybe Katherine sent her to me." Yeah, because in 140 some-odd years, Katherine couldn't find any other way to get your attention. Stefan tries to get Damon past these delusions, but Damon prefers to pet them and call them George. As he leaves the parlor, he nods towards Alaric's corpse. "I'm assuming you'll take care of this." Bastard.
Stefan kneels down by Alaric's side. I wonder how many times he's done this -- how many times he's played sweeper for Damon. But my wondering is cut short by the most wonderful development EVER! Alaric is alive. At first, he wiggles his fingers on his right hand. Then he gasps and sits up. Stefan assumes Damon turned him, but Alaric insists he didn't, and insists he wasn't slipped any vampire blood, either. When he says it was something else, the cameraman helps us by focusing in on his magic ring! As I rip up my Dear John letter, we flash back to...
Blue Blue My World Is Blue: Isobel surprises Alaric with a gift. He protests that it isn't fair, because he didn't get her anything. When he opens it, he's a taken aback by the size of the ring. Isobel knows it's ridiculous, but says he should tell people it's a family heirloom, because no one ever questions that. She then explains that the ring will protect him from all of the things that go bump in the night. She makes him promise to always wear it. She loves him, and she's sorry she's been so crazy, self and a horrible wife. Hmmm.
Back at Mossy Manse, Alaric tells Stefan that the ring Isobel gave him protected him. Stefan, who has his own, similarly gaudy, magical ring deadpans, "That's impossible." Um, yeah. So's a ring that will keep vampires from burning up in the daylight, but not one that can protect humans -- why not? By the way, in the fantasy genre, Stefan, we prefer to refer to the impossible as magical, m'kay? Try to keep up.