Contains spoilers for this episode and earlier episodes.
Mr. Wrench and Mr. Numbers arrive from Fargo to find Sam Hess's killer. A strip club witness gives them a description, and they abduct a man who seems to fit it. After learning they have the wrong suspect, they kill him by pushing him through a hole in the lake ice. In Bemidji, Bill Oswalt formally takes over as police chief. Molly believes Lester links the car wreck, the frozen man and the recent murders. Bill instead accepts Lester's inability to remember events and treats him as the victim of a stranger's home invasion. He removes Molly from the murder investigation.
Malvo goes to Duluth, where supermarket owner Stavros Milos hires him to identify a blackmailer. Stavros suspects his estranged wife, but traces of tanning spray on the demand lead Malvo toward her boyfriend, fitness instructor Don Chumph. Malvo intimidates Stavros's bodyguard as easily as he pressures a post office clerk. Back in Bemidji, Lou worries about the dangers Molly faces and suggests teaching as a safer occupation. Officer Gus learns that the car from his traffic stop was stolen in Bemidji. He struggles with the decision to let its threatening driver go while trying to protect his daughter Greta.