In this episode, we learn that Rin has reached the point of gift giving as her crush becomes increasingly evident.
And by gift I of course mean that she gives Hayato panties. So that he can cross dress better, of course! Staying true to the romantically oblivious male stereotype, Hayato never questions why a girl would give him a gift out of the blue for no reason.
Karen is bummed because Ui spends too much time with Hayato. She tries to start rumors about Hayato and Rin in an attempt to drive a wedge between Hayato and Ui, so that Ui might have more free time to spend with Karen. Ui fixes everything by hugging Karen. If only real life drama was this easy to fix.
Ui correctly senses sexual competition from Rin, and wastes little time one-upping by giving Hayato her actual worn panties, and making him take them off for her! There can only be one gold medalist in the Semen Olympics, and Ui is determined to win it all.
As you can see, there are a lot of panty shots and even a bare ass, but no frontal nudity in this episode. The last scene was fun to watch in action, probably more so than the screenshots would seem.
Thanks once again to ScissorMeTimbers for the stitches and webms.