This episode is a continuation of episode 2 after Naruto manages to obtain his ninja title and forehead protector and has to attend the Explanatory Meeting along with the other ninja graduates. The first appearances of Sakura, Ino, Shikamaru, Hinata, Sasuke, Kakashi, Kiba, Shino and Chouji is shown in this episode. The formation of Team Seven; Sasuke, Sakura and Naruto is revealed in this episode as well. The highlight of this episode is the mishap during the very first ironical confrontation between Naruto and Sasuke. Naruto and Sasuke ended kissing due to an unforeseen accident. Due to this, Naruto was beaten up severely by all the girls in the class. Because of Sasuke under-estimating Naruto's abilities, Naruto was able to defeat and tie Sasuke up. Naruto then disguised himself as Sasuke to get Sakura to reveal her thoughts about Naruto. Naruto found out that Sakura did not like him very much but as he was disguised as Sasuke, Sakura was about to kiss him. Just when that was about to happen, Naruto has a tummy upset and had to rush to the toilet. It was later revealed that his diarrhea was due to an expired milk he consumed earlier that day.