Lieutenant Ji tells Zuko that the Imperial Guard is hunting him, accusing him of treason.Aihe escapes with Zuko, but this is General Zhao's plan.The ship is filled with explosive jelly, the ship explodes, and Zuko is presumed dead.However, Aihe had foreseen this plan, and viewers later discovered that Zuko was hiding on the ship disguised as a crew member.Ann, Katara, and Sokka arrive at Agnaquila, the capital of the Arctic Water Tribe.They met the tribe leader Anok, his daughter Haoyue and the tribe's spiritual leader Master Pagu.An had seen images of Agnaquila being destroyed by the Fire Nation and warned them of the danger, but they welcomed him as the Avatar.However, An disappointed them by telling them that he failed to master the control skills of the four elements.

Ann seeks the help of the supernatural power Kula, but Kula is regarded as a timid person who does not want to care about the world and leaves people to fend for themselves.Kula told Ann that he was attacked by evil spirits shortly after becoming the Avatar and fought them in the spirit world, leaving him physically and mentally exhausted and unable to control the Avatar's abilities.Kula also revealed that he lost his beloved Umi, whose soul was taken away by Taikoo.Therefore, Korra decided to fight the Fire Nation alone, unwilling to give much help.Meanwhile, Sokka is nervous when trying to get close to Haoyue, he recognizes her and is surprised that she has no airs!Sokka recognized her headdress as the same one he had seen during his previous interactions with the spirit fox.Haoyue confirmed that she was the fox, that she had a part of her soul, and that she had been blessed with some moon essence when she was a sick child.She also kissed Sokka.

Eventually, Katara began receiving water-bending training from Yakoda.However, she discovers that the women of the Northern Water Tribe are not allowed to fight, but instead serve as healers.Katara was unhappy with this because she had been fighting the fire casters while the male warriors were unable to participate in the battle.She decided to challenge Pagu in the hope of changing the situation.They engage in a fierce duel, in which Pagu emerges victorious.Nonetheless, Katara won over the audience and her point was proven.Katara and Sokka decided to stay with Ann and fight together, and they made this choice.