The protest at school continues, and there is tension among the teachers and the principal. At home, Renzo has a first encounter with the housekeeper. He finds her a bit odd.

Christmas dinner is interrupted by a phone call from the plant, where engineers are working. Karen listens in. She then has an ominous meeting with the Americans.

There's a problem at school, and of course, our Prof (short for professore [professor, teacher], the affectionate, abbreviated term students use in addressing a teacher) has to investigate.

At the Olivetti home, it's Christmastime, and there's an air of celebration among the members of the extended family. Karen, who is listening in, is engulfed by feelings of nostalgia for her mother.

The election results have come out, and they're disappointing. Grazia gives Adriano all her support, and this gives him the hope he needs to push ahead with his dream.

Karen continues to do her work for the Americans, spying on Olivetti and the Community Movement. Dalmasso and Mauro are seriously trying to undermine Olivetti's efforts to get elected and to bring him to his knees financially.

The laboratory team is all excited as they come up with some great new innovations. They need more funding, however, and decide to demonstrate the results directly to the board.

The factory in Pozzuoli is a success, but the company has taken financial risks, which may be why Adriano is having nightmares. Dalmasso is closely following Adriano's movements.

Adriano goes to Rome to try and get financing for his project. He is unpleasantly surprised to have to deal with someone he knows very well and with whom he had had a falling out.

Karen's report to her superiors about Olivetti's plans prompts some serious spying on his operation by the U.S. Mario Tchou explains his ideas to the new team of young engineers.

Adriano's son Roberto has an idea he wants to develop, but Adriano is skeptical, at least at first. But Roberto knows how to tempt his father with good cocoa and this leads to an important meeting. While they are out, they discover that Mauro Barale is running for office.

Adriano imagines his new factory and describes the layout to Karen. The workers in Dalmasso's factory are not happy about their working conditions and Mauro manages to placate them. Dalmasso notices his skill in dealing with people and has a new idea of a job for him.

Adriano's new idea is to open a factory in the south of Italy, a very poor part of Italy. Convincing his board is a huge challenge. He takes Karen and her camera around the southern part of the country to scout for locations.

Paola makes a quick decision upon meeting Grazia. Karen Bates comes back with some footage for Adriano to look at.

Adriano's illness and hospital stay bring about a pivotal moment for relations between Grazia and her father, and not only them.