Picking up from last episode's cliffhanger, Monica, Will and Nicole are in the midst of the HoH competition. Nicole says that this is "the biggest, most important HoH competition yet. If I don't win it, that signs my death warrant. I'll kill myself trying to win." Overhead an airplane trails a banner reading "N & W in hotub Im betrayed & hurt. J," sent by Nicole's husband Jeff. Hardy explains in the Diary Room that the night before the group had gathered in the hot tub and rumors had evidently spread via the Internet that something inappropriate happened between Nicole and Will, upsetting Jeff. He goes on to say that this was an emergency of a serious nature, causing Nicole to worry that her marriage may be over due to the Internet rumors, so Big Brother contacts Jeff because of the incident. Nicole then communicates a message to Jeff, still on the bed competing for HoH, directly to the cameras for transmission over the live Internet feed, vowing that he had absolutely nothing to worry about.
With all three competitors still in the game, Hardy makes them an offer on behalf of Big Brother. The first one to take their hand off their key and ring their bell will win a chauffeur-driven limousine ride to the fast food restaurant of their choice. Will, Monica and Nicole reject that offer quickly.
Looking at the group, which has tried to cover up with the bed sheets for warmth, Hardy notes that Nicole was "positioned precariously, especially since Will kept moving around." Will tugs on the sheets to better cover himself and Nicole pulls back, taking her hand off her key to do so. As Nicole leaves the bed and the competition, Will apologizes, but Nicole, already upset by the banner, is infuriated. As she walks away, Will looks at Monica and laughs, "One of them [Hardy or Nicole] is going home." In the Diary Room, Nicole rages, "I just lost to Will's ass! And the only good thing in my life is falling apart!"
Will talks to Monica, saying that he's been deceitful since he got in the House, but hasn't tried to hide it, while others do the same and worse, only they can't admit it. Monica gears herself for the long haul, telling Will that HoH is "something I want. You don't understand." Earlier Will had noted that when Mike and Shannon were evicted, both finished second in the previous HoH competition, leading him to wonder if throwing the competition would be a good strategy. Hardy comes to him and Monica on the bed and makes them another offer: accept the mystery prize, which could be "their wildest fantasy or worst nightmare," or stay in the game. Will takes his hand off the key and rings his bell, saying, "I came in this House to gamble."
As a result of his gamble, Monica is the new HoH and Will is the proud winner of a three-foot-tall (empty) jar of peanut butter, a prop from an earlier Food Competition. Nicole and Hardy are both upset at Will's decision, because the deal they made with him depended on him winning HoH. By accepting the offer, they feel he threw the Competition and sold them out. Nicole tells Hardy, "It makes me sick that he got the best of us." In the Diary Room, Nicole says of Will, "I've never had such an immense distaste for anyone in my entire life. Ever." Will anticipates this reaction, but thinks that Hardy and Nicole will eventually realize they need to kiss up to him in order to stay in the House. In their bedroom, Nicole tells Will, "I have to hand it to you, Will. You played us like a violin." She leaves the bedroom for the patio, but returns a few minutes later and yells at him, asking, "What is it about me that you think you can stomp all over me? Do you think you're smarter than me? Do you think you're better than me?" She leaves again for the patio, but this time Will follows her. He apologizes, saying, "I'm sorry you think I'm such a monster. You've proven to be an amazing friend. I hold myself responsible for the bad things that have happened to you and I hold you responsible for the good things that have happened to me."
Making her first nominations, Monica has what she calls "a little anxiety attack." Nicole and Hardy are also nervous, not knowing Monica's strategy. Will is blasÈ, saying, "I'm always nominated." Gathering the nomination keys, Monica looks to the pictures of Sheryl, Bunky and Krista, calling them "the underdogs," and prepares the nomination box. Hardy reminds Nicole that their plans can still work so long as one of them is kept safe by Monica. Nicole is hopeful, thinking that Monica hates Will enough to nominate him, ensuring "a fun, peaceful House." With only one key to pull, Monica removes Will's key, which leaves Nicole and Hardy up for nomination. Monica tells them, "You two are a power and you threw it in our faces." Will, whose one vote decides who stays and who goes, smiles broadly and calls Monica his "new best friend." Nicole is preoccupied with the banner she saw and says, "I'm nominated and have to live with not knowing what's happening on the outside." Looking back on the decisions and agreements he's made, Hardy says, "I should have been more intelligent with my choices."