In the Middle East, a troop of Britannian Knightmares, led by Princess Cornelia li Britannia, depose of the last of a resistance army and officially establish Area 18. Having received news of Clovis's assassination, Cornelia makes plans to travel to Area 11 to assume the position of its new Viceroy, and to defeat Zero.
Lelouch returns home from freeing Suzaku and is greeted by the mysterious green-haired woman who gave him his power and whom he thought was dead. She introduces herself as "C.C." (C-Two). Lelouch demands to know who, or what, she truly is, but she proves to be very stubborn.
In the days that followed Zero's grand appearance, more resistance movements began to emerge throughout Area 11, with rumors reaching the Japan Liberation Front of benefactors in Kyoto granting the experimental Guren Mk-II Knightmare Frame to Zero. In addition, Jeremiah's assisting Zero in letting Suzaku escape destroys much of the Pureblood faction's reputation, with Jeremiah, himself, being viewed with a great deal of suspicion due to his connection to "Orange". Lelouch confides to C.C. that "Orange" was simply a term that he invented: there really was no "Orange". It simply served to sow suspicion among the Purebloods, with that suspicion focused now on Jeremiah.
Suzaku is found innocent of Clovis's murder and released. As he walks through the city, he catches a pink-haired woman falling out of a window, who claims to be on the run from ne'er-do-wells and asks Suzaku for his protection. Afterwards, the girl, who introduces herself as "Euphy", reveals that she's actually a student from the Britannian Homeland come to Area 11 for sight-seeing. Suzaku escorts Euphy through the Tokyo settlement, and the two become friends. As a last, rather surprising favor, Euphy asks Suzaku to take her to the Shinjuku ghetto.
At Ashford Academy, Lelouch sees C.C. frolicking about the school grounds. He takes her to the rooftop to reprimand her, and she notices a female student making another marking in a wall. Lelouch used his power, which he has come to call "Geass", on her to test its capabilities: it has an effective range of 270 meters, it is not effected by transparent surfaces like glasses, it can be reflected off of mirrors, and the subject has no memory of the events immediately before, during, or immediately after coming under the Geass's power.
Suzaku brings Euphy to the Shinjuku ghetto. A couple of Britannian students are taking photos of the area, but are accosted by one of the terrorists, Tamaki. Suzaku goes to defuse the situation, and for his trouble, is called out by Tamaki as a traitor who sold his soul to Britannia, as well as by the Britannians for not acting sooner or killing the Elevens. Euphy smacks one of the Britannians and reprimands them.
Suzaku confides in Euphy, and Lelouch in C.C., their grievances with the world, caught up in a neverending cycle of violence and hatred. Both desire for a world that was at peace.
Suzaku's introspection is interrupted by the sound of battle. Jeremiah had been lured to the Shinjuku ghetto with news of Zero's appearance, and now found himself surrounded by Purebloods hoping to kill him before Cornelia arrives in order to save face. Lloyd and Cecile arrive with the Lancelot, now armed with MVS swords. Suzaku, along with Villetta, are able to fend off Jeremiah's assailants, but one of them attempts to kill them with a Chaos Mine. Euphy arrives, and is protected from the Mine by Lancelot's shields. Euphy then steps forward, announcing herself as the Third Crown Princess of the Britannian Empire, Euphemia li Britannia, and commands the Purebloods to stand down. She then requests Suzaku's aid in ending the war, so that no one would have to die like Clovis or Suzaku's father, the last acting Prime Minister of Japan, had.
Cornelia arrives in Area 11 that evening. After chastising Euphemia for her recklessness, she demands of her entourage the apprehension of Zero.
The following day, Suzaku Kururugi becomes a student of Ashford Academy, and becomes Lelouch's classmate.
