The beginning, and also the culmination of Blair Waldorf’s entire life: she finds out whether or not she’s gotten into Yale.
Naturally, she’s a nervous wreck. Since the dean told her that Yale needs someone like Blair Waldorf, she thinks she’s pretty much in.
As it stands, however, Serena and Dan both get accepted, while Blair gets only wait-listed. The horror this elicits is significant.
After the headmistress talks her down from the ledge by assuring her that most waitlisted students get into the college of their choice, Blair goes off the rails when the new English teacher, Miss Carr, has the audacity to give her a B on a paper.
In a very Blair-like fashion, she tries to explain to Miss Carr that second semester seniors get a free pass as to not mess up their GPAs, preventing them from getting into a good college.
Miss Carr, an Iowa native new to New York and fresh off a stint of Teach For America, doesn’t understand Upper East Side grade padding, and tells Blair that the B stands, and she should have thought of this earlier.
Naturally, she plays a prank on new-in-town Miss Carr: She invites her to have dinner at the Boathouse in Central Park, after which they will go to the opera at 8.
The Boathouse is closed, and the opera starts at 7, not 8.
At the last minute, Blair gets a call from the headmistress who assures her Miss Carr will raise her overall grade to an A for the semester if Blair's work is satisfactory. So she runs to find Miss Carr to apologize.
The two make up, but the second Blair speeds off in her limo, Miss Carr is on the phone to the headmistress. Blair gets detention, and moreover, her admission to Yale now hangs into balance, says the headmistress.
Instead of serving her punishment and keeping her head down, Blair declares all-out war. She’s planning on waiting for the perfect time and place.
Lily and Rufus are officially together. Serena and Dan are too, and feeling a bit awkward about their parents' new status.
Further complicating matters is the fact that while Dan is thrilled they both got accepted into Yale, Serena isn’t sure she wants to go.
She had always wanted to go to Brown; it was just the idiotic competition with Blair that made her decide to even apply to Yale.
When she finds out that Blair didn’t bother to apply to any other schools, she decides to officially decline Yale’s offer so that the next person on their list - Blair - gets in instead.
What Serena isn’t telling anyone, and may not fully realize herself, is that she’s pulling away from Dan. For his part, he is doing the same thing, even becoming inappropriately interested in Miss Carr, it appears.
While Dan and Serena may be weirded out by their parents getting together, Chuck still blames Lily and her affair for Bart’s death.
He’s living alone and spending all of his time coming up with ideas to get his uncle Jack removed as head of the company.
While his plans are devious and poorly executed, it appears Jack does suck at running a company - and has a bit of a drug problem to boot.
After Chuck's attempts are unsuccessful, he turns to Lily, hoping her 20 percent stake in the company can help him get the board to oust Jack.
Unfortunately, Bart’s will was clear: If Chuck violates the morality clause, then his guardian is in charge. End of story. They are at a loss.
However, when she meets her lawyer at the opera, Lily remembers that right before Bart died, they were in the process of adopting each other’s kids, which means paperwork exists that would make Lily Chuck’s legal guardian.
Chuck puts aside his distaste for Lily and signs.
Jack is automatically out of Bass Industries, which does not sit well with him. Coked up and crazed, he follows Lily to the powder room and attacks her. Dan and Chuck figure out she's missing, find out she is and C busts down the door and gets Jack away from her, laying him out.
The next morning, Lily - now interim head of Bass Industries - calls Chuck over to her apartment to thank him for saving her the night before.
Not only that, but she tells him that when he turns 18, she’s giving him the company back. She doesn't want it and it is his rightful place.
He thanks her, and takes her up on her earlier offer to move back in with her. It's a sweet scene and a fitting end to a good episode.
(Source: TV Fanatic)