At the hospital, Officer Grimly anguishes over accidentally wounding Deputy Solverson. The unloaded handgun Nygaard placed in Gordo's backpack is discovered at the boy's school, prompting police to search the Nygaard home. The incriminating evidence Nygaard planted in Chazz Nygaard's gun safe is found. Nygaard concocts a new story for police claiming Chazz killed Pearl Nygaard during a heated lovers' quarrel. Nygaard says his hand was wounded when Chazz shot Chief Thurman and only covered for him because he feared retaliation by his hot-headed brother. Nygaard is released from jail, while Chazz is incarcerated. Solverson questions Mr. Wrench, who is hospitalized under guard, and informs him that Mr. Numbers is dead. Wrench, who is deaf, refuses to cooperate. Meanwhile, Malvo goes on a shooting rampage in Fargo, North Dakota, murdering 22 people associated with the parties responsible for sending the hit men (Numbers and Wrench) after him. Nygaard seduces the money-grubbing widow Hess with promises of "greasing the palms" of the insurance agents handling her late husband's policy without mentioning it was cancelled for non-payment. Returning to Bemidji, Solverson is dismayed to learn that Chazz Nygaard was arrested for murder.