This entire season parallels the first in many ways. This episode is like episode 12 of season one because it is split between Aang and Zuko's perspective. This episode is even more interesting though, because they are both being involved directly to the same story by the perspective of the character they have a connection with(Sozin or Roku) Avatar Roku's Spirit seems to has his hands all over this episode- after all who knows how Iroh knows all of this, and furthermore how did he find the royal artifact- and furthermore have it in his jail cell? There is definately spirit activity helping him.

My guess is that he meditated into the spirit world and worked with Roku's spirit to bring Aang and Zuko together and restore balance. Roku did his part by showing Aang the story of the Avatar and the Firelord and helping him interpret the story in such a way that he said, "everyone, even the firelord and the fire nation need to be treated like they are worth giving a chance." which will be the principal that will lead Aang to accept Zuko and show mercy to the Firelord.

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