LAN studies HUNG’s notes. With the hint of FOK KOON-WA, a kung fu master from the north, she manages to grasp more about martial arts. KIU has been taking good care of HANG since he fell ill. He apologizes to her. He also regrets how bad he had been to her in the past. Out of SHUI’s expectation, HANG puts forward a series of measures to deal with the Japanese so as to ease the public’s worry. KIU is pregnant. If it were not for her sake HANG would have SHUI killed. LUNG looks for old photos of FA and him at a second-hand stall. FA drags him to an alley. He admits loving her. FA turns down TOKUGAWA KAZUO’s love and then quits her at Fook Yue Kui. SHUI has cooked up a scheme to cause HANG to have a stroke. HANG’s mobility has been affected. SHUI takes over HANG office. SHUI forces the kung fu masters to withdraw from the contest so that MATSUMOTO can become the Chief Kung Fu Trainer. Everybody does as requested except for KONG……