Blair and Serena have managed to repair their fractured friendship and are now leading a peer group at their high school. During a peer group session Jenny confesses that she's considering breast reduction surgery to decrease the size of her double D's. Blair makes the mistake of admitting she's considering breast augmentation surgery, a story which hits the school rumor mill as soon as the meeting concludes. Serena is head over heels in love with Blair's stepbrother, Aaron, and announcing it to the whole world. Blair is quite annoyed with Serena's happiness since she still isn't over her relationship with Nate. Dan and Vanessa finally make love. Minutes later Vanessa discovers that she has gotten into NYU, which makes Dan feels insecure about his own college applications. Blair makes a drastic hair decision and cuts her hair into a pixie do in order to resemble her idol Audrey Hepburn. When Blair finds out that Aaron got early acceptance to Harvard, she goes into total bitch mode. Blair is desperate to get into Yale and a bit steamed that she has to wait until April to find out her fate. Nate heads into a downward spiral of drinking and drugging. While shopping Serena is discovered as a model and asked to be in a fashion show in Bryant Park. When Blair arrives at her Yale interview she is instantly smitten with older man Owen Wells, who may just determine whether or not she's going to Yale.
This report prepared by Sandra Calhoune