The episode starts with Kumoko waking up from her evolution into a Small Taratect, she discovers that her SP (Stamina) is dangerously low. Luckily she still has the carcass of a Elroe Baladorado nearby which she devours in order to regain her SP. Kumoko then decides to pick up two new skills: <Thread Control> & <Detection>.
<Thread Control> allows her to manipulate her webs more precisely, while <Detection> allows her to notice her enemies before they do. However, Kumoko soon finds out that she is incapable of using <Detection> because her head hurts too much every time she turns <Detection> on. With her new <Appraisal LV6>, Kumoko appraised herself:
Kumoko (Episode 3)
Skill Points: 0
Average Offense Ability :
Average Defense Ability :
Average Magic Ability :
Average Resistance Ability :
Average Speed Ability :
Stat & Ability Skills
n% I = W
While searching for preys to level up, Kumoko runs into a group of humans, who are all LV20+. The humans immediately give chase, forcing Kumoko to run away. While running away she runs into numerous monsters, she manages to narrowly evade the monsters, leaving the humans to deal with them. Unfortunately, Kumoko then stumbles off a pit, falling deeper into the labyrinth.
Back in the Kingdom of Analeit, Yuri informs the class that they are having a practical Magic exercise in the Western woods of the Academy. Yuri is now a pious follower of the Word of God Religion, preaching the teachings of the Word of God to Shun during their conversation. During the practical Magic exercise, the class is taught water magic. Hugo gets competitive with Shun, trying to prove that he is a better magic user. This leads to Hugo using fire magic even though the practical class is focused on water magic. Shun thinks Hugo went too far, and uses his water magic to cancel out Hugo's fire.
Suddenly, the class is attacked by an Earth Wyrm, Oriza-Sensei tries to stop the Wyrm's attack but is killed instead. Hugo tries to show off his fire magic but fails to deal any damage to the dragon because of the Earth Wyrm's <Imperial Scales> and gets injured after getting hit by the Wyrm's tail. Shun, Yuri and Sue manage to combine their water magic to deal a blow to the Wyrm. Shun then uses <Mental Warfare> & <Magic Warfare> to temporarily boost his capabilities and block the Earth Wyrm's breath attack. Hugo then goes on a crazed streak, shooting fireballs randomly at both the Wyrm and his allies forcing Shun to incapacitate Hugo with water magic. Fei sensing the danger jumps into the Wyrm biting its neck and destroying some of its scales allowing Shun to cleanly behead the Wyrm. In a shocking revelation, Fei gains the title <Kin Eater> implying that the Earth Wyrm was one of Fei's parent, shocking Sue, Yuri and Katia. Shun gets affected the most by the revelation and falls onto his knees.
In the after credits scene, Kumoko is shown being attack by Finjicotes as she falls down the pit. At the bottom she encounters three Elroe Baladorados, leaving her no choice but to hide. Kumoko then comes head to head with Earth Dragon Araba. Earth Dragon Araba makes quick work of the Finjicotes and Elroe Baladorados showing unimaginable power. Sensing that her life is in danger, Kumo tries to crawl away from the battle, but she quickly stops in her track as Araba locks onto her next.
The Earth Wyrm that attacked the Academy was implied to be Fei's parent, the Wyrm is most likely a Fenegrad.
The pit that Kumoko fell into was most likely created by her mother, the Queen Taratect, the hole is the aftermath of the Queen Taratect wandering around the Great Elroe Labyrinth. Humans would sometimes use these holes to explore deeper into the Great Elroe Labyrinth, few have ever returned alive.
Kumoko actually fell all the way to the Lower Stratum, the second deepest part of the Great Elroe Labyrinth.
Araba is the de-facto ruler of the Lower Stratum of the Great Elroe Labyrinth.