Andy: And? Dwight: Look at the intern to your left. From you. He tries to lean in and kiss me. Let's discredit these rumors. Michael: Stanley's wife is out of town. Michael: Yes. Michael: [sighs] The one true rumor, and this is going to ruin this person's life, is that...
Jim: [interrupting] That Pam's pregnant. Michael: [whispering to Meredith] Did you hear Pam is pregnant? So... and Andy is gay. Stanley: [as Michael gets in car] That is ridiculous. The real thing is that Stanley Hudson had an affair. What you can do is spread false gossip so that people think that everything that's been said is untrue, including "Stanley is having an affair." [to others] He's over here!
Plan: A: the office; Q: Who gossips about the summer interns? A: Michael; Q: Who discovers that Stanley is having an affair? A: the damage; Q: What does Michael realize he's caused? A: Pam; Q: Who is pregnant? A: the air; Q: What does Michael try to clear? A: their rumor; Q: What do Jim and Pam admit is true? A: embarrassment; Q: What does Stanley fear? A: Terry; Q: Who is Stanley's wife? Summary: As the summer interns prepare to depart, the office gossips about them and Michael feels left out. Michael discovers that Stanley is having an affair, and tells everyone. When Michael realizes the damage he's caused, he fabricates numerous other rumors to discredit himself, including that Andy is gay (confusing Andy) and that Pam is pregnant (unbeknownst to him that she is actually pregnant). As Michael tries to clear the air, Jim and Pam admit their rumor is true in an attempt to save Stanley from embarrassment. Michael accidentally confirms the suspicions of Stanley's wife Terry about his affair, which gets Stanley extremely angry.