Oscar claims to be not afraid of anything. Susan puts this to the test.
Grover, lost in a scary forest, sings "I Whistle a Happy Tune" to keep his spirits up. He bumps into a monster -- but it's Cookie Monster, who happily joins in the song. Then they run into a little boy, and they run away, panicked.
Ernie tries to count his balloons. The balloons are arranged in a circle, so he continues counting around the circle, and counts some of them twice. Grover has a solution -- he pops each of the balloons as he counts them.