Kim has stayed in her bedroom for a week after the events that occurred in Episode 6. Sugar has been calling her frequently, but Kim hasn't been answering the calls. Nathan comes into Kim's room, which is a mess, and he is under the impression that she isn't feeling well. Kim gets out of bed, and goes out to speak to Sugar.
Despite the fact that Sugar now knows that Kim is gay and that she fancies her, she's acting as though none of this has come out, which this worries Kim.
Sugar asks what lesbians do [sexually], but Kim doesn't actually know. Sugar asks how she knows she's gay if she's never had sex with a man, but Kim requests that they change the subject. Sugar tells Kim that she's done with men, and it's time she found other ways to enjoy herself. Later, when Sugar and Kim are sitting in deck chairs next to each other, Sugar puts out her hand, inviting Kim to hold it, and she does so.