Gossip Girl episode recap for 'The Jewel of Denial'

Facing reality on the Upper East Side is not an easy thing to do. And Blair is struggling to open the paternity test results that can possibly derail her fairy tale for good.

On this week's episode of Gossip Girl Blair fights to put off finding out the father of her baby, Serena and Charlie (Ivy) head back to New York, Dan gets into a literary pickle with former mentor Noah Shapiro and Nate begins interning for his cougar lover Diana Payne.

Let's get this party started.

The main players:

The mystery of Blair's baby daddy is finally solved-or is it?

During the entire episode, Blair battled a thin paper envelope that contained the results of the paternity test. To stall finding out the father, she read Grace Kelly's autobiography, shopped for shoes and attended a Jenny Packman party and walked the runway.

But Blair promised Dorota that she would open the test results before Prince Louis returned from his trip. So Dorota enlists the help of Dan Humphrey to try to get Blair to face her fears and find out the truth.

Blair promises Dan that she will open the envelope as soon as she finishes her interview with Hello Magazine. But during the interview, the writer asks Blair about her plans for starting a family and leaves Blair speechless. So the reporter tells Blair what her fiancé said about having kids - that he's not ready to be a father and sees it as something that will happen in the future.

Once Blair hears this, she shuts down and decides to completely rip up the envelope and tear it in the trash. Then she rushes off to the party to try to forget about the whole thing.

But Dorota, being the crafty maid that she is, tapes the results back together and hands the results to Dan. Dan finally confronts Blair at the Jenny Packham party, but Blair still refuses to open the envelope and causes a scene by arguing loudly with Dan in the middle of the room. She even pushes him to the floor before the night is over.

Blair rushes out of the party and Dan follows her. After a heart-to-heart talk, Blair finally opens the envelope.

And, in a scene that fans have been waiting for since the start of the new season, Blair shows up at Chuck's apartment immediately following her finding out the truth. She tells Chuck that she's pregnant and that Louis is the father. She explains that she didn't want him to hear it from someone else.

And although Chuck plays it relatively cool, he breaks down at the end of the episode in tears, with his new dog Monkey by his side, and finally is able to feel the pain and heartbreak of losing Blair all over again.

Blair goes home to tell Louis that she's pregnant, prepared for the worst. But Louis is ecstatic and happy and explains to Blair that he said those things to the magazine to protect her privacy and her image. So, it looks like Blair's fairty tale will continue to go as planned, with a little prince on the way.

But, was Blair really telling Chuck and Louis the truth? Since we never saw the paper or the results, and Blair is hiding the envelope, we have a funny feeling and a sneaking suspicion that Blair is possibly lying or something went awry with the test results.

At bat:

Serena comes back to New York with some extra baggage in tow-her cousin Charlie, or the struggling actress who is playing the part of Charlie but really happens to be Ivy.

But Serena has convinced Ivy to come back and live with her in New York. And Ivy agrees. So she puts on the front and starts playing the role of a Rhodes girl all over again. And although Blair accepts Charlie back into the mix of things, Lily isn't so ready to welcome back her niece, especially after she receives a strange phone call from Carol asking about Charlie.

When Serena visits Lily to try to convince her that Charlie needs some space from Carol and needs to stay in New York, Lily says that she won't lie to Carol and that Carol deserves to know where her daughter really is.

When Ivy overhears Lily talking, she makes the snap decision to reunite with her boyfriend Max in Portland and leave all of New York behind. But Serena sees Charlie leaving and decides to try one last attempt to make her stay. She hands Charlie her tickets to the Jenny Packham party and asks her to return them for her on her way out of town.

But when Ivy shows up at the party, an event planner whisks her away and tells her to get ready in hair and makeup because Serena van der Woodsen sent word that Charlie would be walking down the runway at the event.

And when Ivy sees the pink, sparkly dress in front of her, she simply cannot resist and decides to stay for the fashion show.

But a surprising pep talk from Blair makes Ivy realize that she doesn't have to run away from New York so quickly - that she has some dirt on Carol.

So when Carol shows up at the fashion show (meeting Lily and Rufus there) after her flight to New York, Carol confronts Ivy and tells her that she needs to go back to living her own life.

But Ivy explains that if Carol calls the cops or tries anything, she will simply explain to the authorities what really happened - that Carol hired an actress so that she could get access to her daughter's trust fund.

And once Carol realizes that Ivy has the power to blackmail her and get her in trouble with both the cops and her entire family, Carol backs off and allows Ivy to continue playing out her role as Charlie in New York City. So, it looks like cousin Charlie will be staying on the Upper East Side for quite some time, unless someone (hint hint) exposes her secret.

Warming up

Dan Humphrey was going through a few of his own problems tonight. Besides helping Blair confront her test results, Dan was also trying to help Chuck begin to "feel something" again. So he brought Chuck a dog - an adorable pooch that Chuck rejected at first, but grew attached to at the end of the episode.

But most of Dan's storyline this week revolved around him trying to stop the publication of his novel - a book that is based on all the people he knows on the Upper East Side.

So Dan visits Noah Shapiro, his former mentor, for advice on how to stop the publication of the book. Shapiro simply tells Dan that the way to have the whole thing blow over is to simply have the book published, because it probably won't get the attention of anyone anyway.

Dan agrees to take Noah's advice and let it go, but when Dan gets hit with a Gossip Girl blast about the novel and the mystery author, Dan heads back to Shapiro's office to make sure he didn't slip to someone about his identity as the writer of the book.

But when he returns, Shapiro's agent, Alessandra, explains that she's really busy because Noah's gearing up to release a new book called "Inside." She explains that it's a novel about people Dan's age and that he'd really like it.

Dan is dumbfounded when he learns that Noah is stealing his work and taking credit for it. On one hand, this solves Dan's problem of remaining an anonymous author, but on the other hand, Dan doesn't feel it's fair for his work to get out under another author's name.

So he finally makes the decision to confront Noah at an industry dinner and take credit for his work - a step he knows will cause many problems for him in his social circles.

When Dan finally comes forward as the author, Noah and the rest of the publishers and agents applaud him. They had been setting Dan up the whole time, tricking him into publishing under his real name and getting himself out there, despite the consequences.

So, what kind of chaos will ensue when Dan's friends and family members finally read the finished copy? Will they disown Dan Humphrey once again? We'll have to wait and see.

Left field

There was a lot going on in tonight's episode, so we have to pay attention to yet another important storyline - Nate interning for Diana Payne.

Even though Nate had the opportunity to intern for a senator or investment company, he decides to take a job from Diana Payne, the new leader of the New York Spectator who also happens to be sleeping with Nate.

And during his first day on the job, Diana fires her entire staff and asks Nate to "make her scream" in the office. We believe that Nate obliges, but soon enough he begins to think that Diana hired Nate as a sex toy rather than an actual worker (silly boy).

When Nate confronts Diana about this, she agrees to let him do a lifestyle piece on an important Congressman. So at the Jenny Packham party, Diana points out the congressman, gives Nate a few talking points to address and sends him to conduct the interview.

But when Nate brings up a certain trip to the congressman, the politician's wife immediately get suspicious about the congressman's supposed business trip being a totally different type of getaway with another woman. So she storms out and demands a divorce, and Nate is left dumbfounded because he is the one responsible for causing all the trouble.

Nate becomes upset with Diana for setting him up, but Diana explains that she wants to turn the newspaper into a place for juicy gossip and exciting scandal - something along the lines of Gossip Girl.

Nate explains that if Diana really had wanted to figure out all the goings on, she could have just gone through some of the phones that were turned in at the Packham party (no phones were allowed at the event, so they were collected and labeled at the door). Diana hails Nate for his unintentional brilliant idea and he reluctantly collects a few phones so Diana could get all the gossip on some of the party attendees.

And one phone, in particular, catches Nate's eye - a phone without a label, but one that happens to belong to a girl named Ivy. It looks like Serena's supposed cousin might be in more trouble than she thought.

On the bench

Lily finally showed up during this episode (it's nice to have her back) and she is off of house arrest thanks to some slick work by Rufus and her lawyer. That is all.

Best plays of the night

- The fact that Dan decides to get Chuck a dog to help him feel is amazing. The dog is adorable and we're adding tons of points for the dog's name being Monkey. Awesome.

- We appreciate Noah Shapiro's weasel-y cameo.

- The fact that Nate actually thinks his internship is something serious is adorable. Everyone knows he's just good for man-whoring and baking pot brownies.

- Lily says she spent most of her house arrest playing Angry Birds.

- Blair to Dan: "You look like a muppet."

- Of course the card attached to the dress to Charlie from Serena reads something ridiculously lame and cliché "Live your dreams." That's Serena's way of being inspiring.

- Blair looked incredible in that dress at the Jenny Packham party-pregnant or not.

- Appearances by Chris Benz and Simon Doonan

- Blair and Dan having a public cat fight that ends with Dan sprawled out on the floor. Amazing.

- Blair to Chuck: "There's a part of me that really wanted it [the baby] to be yours"

- Chuck's crying scene at the end had us tearing up too. Well played Mr. Bass.