In the Southeast, to lose one's religion means to lose civility. To fly off the handle. Give up control of one's better judgment, even. With all that took place in the first hour (Deterioration of the Fight or Flight Response), emotions are running high as the second half of the finale begins.
A revitalized Denny wakes up from his heart transplant (received in the first part of the night's finale) and his more upbeat than ever, reiterating his marriage proposal to Izzie, who remains taken aback by it. She leaves the room and tells him she'll return later. Burke wakes up from his own operation and experiences problems in his left hand, as the fingers shake.
Cristina is still unable to reach out emotionally. The interns, meanwhile, are transformed into one giant prom committee by Richard and taken off all surgeries until someone comes forward about the stunt they pulled.
George dodges Calli when she asks what he's been up to, and Meredith is equally awkward when Finn arrives at Seattle Grace unannounced. Despite bad news about Doc, who Finn recommends be put to sleep, Meredith seems more or less happy to see him and invites him to the prom later. Derek extends the same invitation to Addison. The interns are then called in to see Richard, who plans on grilling them individually until they break. Surprisingly, all of them (Alex included) refuse to roll over on Izzie, instead turning their interrogations into personal therapy sessions.
-- Alex talks about how he may not like his fellow interns, but they're in it together, like members of a football team.
-- George nearly cracks under Dr. Webber's stare, but manages to keep the secret. He apologizes for not saying what Richard wants to hear, much like his situation with Calli.
-- Izzie discusses how Denny looks at her as a person, not just a hot chick, which she is, and that's why she loves him so.
-- Cristina pours her heart out and asks how Richard keeps his edge, as she has clearly lost part of hers in the past day or two.
-- Meredith turns the interrogation around, and admits to having figured out the relationship between Richard and her mother.
Despite his frustration over the unresolved incident with Denny's LVAD, Richard shares a poignant moment with his niece as the prom gets underway. After putting their forlorn canine friend to sleep, Meredith and Derek arrive at the event with their respective dates. After a moment of eye contact that means far more than a passing glance, the two disappear to a room at the hospital, where Meredith demands he stop looking at her that way. Derek would, he says, but he can't. Then they make love, naturally.
George tells Calli that he can't force his feelings for her, but wants time so that he means them. They make up and make out. With Izzie on her way up to see Denny before the prom, he dies suddenly due to a blood clot. Izzie is devastated but Alex consoles her and carries her out of the hospital. As she leaves, she admits responsibility to Richard and quits the internship. As the screen fades to black on Season Two, Meredith and Derek ask each other what their encounter means, and final scene shows her looking back and forth between Finn and Derek, unsure of where to turn.