Things are on high alert at Wayward Pines and everyone seems to want different things. Pilcher naturally wants to be control of absolutely everything that goes on and for everyone to follow the laws that he has created. He also very much wants to be seen as the benevolent benefactor. Ethan wants the violence to end and for peace to finally come to Wayward Pines. Kate, simply wants to the truth and is willing to do whatever she has to do get it.
There's a lot of flashbacks this episode. We see Kate shortly after being brought to Wayward Pines and she is in a padded cell with Pilcher, who is acting as her psychiatrist using the name Dr. Jenkins. Kate is absolutely convinced that she has become an unwilling participant to some sort of secret government experiment though Pilcher tries to convince her otherwise. We see Pam doing her evil thing and injecting Kate. Later when Kate appears to have acclimated, she is now in an office with Pilcher and she talks about how all of the questions that she had in previous life still exist. Kate wants to know if there's a God and why it is that humans breathe but she has come to terms with her new life in Wayward Pines, admitting that it's a lot safer her. Pilcher buys her story and writes Kate a prescription. Pilcher encourages Kate to get pregnant, saying that she would make a good mother. Outside the office, we see Kate crumple the prescription in her hand. Kate has convinced Pilcher of her willingness to follow the party line but she's clearly not giving up.
Pam seems to have undergone a bit of character growth this week. When David marches into the hospital demanding to know how these people could have created a bomb, it's Pam who pulls him aside and reminds him of where he is. Pilcher is at a loss as to what to do but is clearly considering violence. It's Pam who deflects this urge and suggests that they should hold a gathering and make a celebration of life in Wayward Pines. At this point, Pam seems a long way away from the woman who gleefully injected Kate with drugs against her will.
Pilcher heads to see Kate to question why she didn't come to him with her concerns. It seems that he wants impress upon Kate that her actions have caused harm to the community and that she needs to stop her people. Kate however turns the tables when she calls Pilcher by his actual name, instead of Jenkins. Pilcher is stunned that his identity has been revealed and demands to know how long has been aware of who he is but Kate simply responds that it doesn't matter. Pilcher is disappointed because Kate represents a failure for him he had thought that if he could get Kate to conform that he could get anyone to conform. Kate demands to know the truth but Pilcher simply walks out of the jail. The fact that Pilcher was so determined to break Kate rather than working with her to settle things down shows how his megalomania makes him unfit to lead.
Pilcher's paranoia is running high and he is certain that someone inside of the mountain must be helping the people of Wayward Pines. He has the entire place being monitored 24/7 and therefore someone must have been ignoring the secret gatherings. To calm his nerves, Pam agrees to head an investigation. Pam sits down with the surveillance team and asks pointed questions about their family and how they feel about their job. All is fine until she gets to Reggie, who immediately spouts the company line. Pam prods more out of Reggie and he finally admits that he sometimes fudges or erases bits of tape when people are actively questioning. Reggie believes that it's human nature to question and that he sees these people crying alone in their beds at night. Reggie doesn't want to be responsible for the death of someone simply because they questioned what is going on. Pam assures him that everything is going to be okay and dismisses him.
Things aren't going to go well for Reggie because David has determined that what's needed is more discipline. How this man cannot figure out that this approach didn't work in the town and was therefore not likely to work with the mountain people is beyond me, especially given that he is supposed to be a genius. Pam starts begging David for Reggie's life and says that if someone should punished it should be her. David determines that there will be no more violence and decides to put poor Reggie in the freezer again in front of the mountain staff.
Ethan is still running around town trying to get control of the situation. When he finally confronts Kate, she is anything but cooperative saying that he is Pilcher's man now. Kate accuses Ethan of just following orders and says that her people depend on her and therefore she won't be giving them up to Ethan. It's worth pointing out that Kate has a reason to be mistrustful. She has been in Wayward Pines much longer than Ethan, has actively been lied to, drugged against her will, and watched as people were reckoned for disobeying Pilcher's laws. This would the perfect opportunity for Ethan to tell the truth but of course he doesn't,even though it's clear that all she wants are answers. Ethan doesn't pause for a moment to consider that it wasn't that long ago that he was in Kate's position determined to figure out what is going on.