Peggy (Kirsten Dunst, left) and Ed (Jesse Plemmons, right) are in danger in episode 5 of "Fargo" Season 2. FX

"OK then." Things really took a turn for the worse in episode 4 of FX's "Fargo" Season 2. Between Betsy's (Cristin Milioti) war on cancer and the war between the Gerhardts and Kansas City, tensions are running high in North Dakota and Lou (Patrick Wilson) is just stuck right in the middle of it all. What will happen in episode 5, "The Gift of the Magi"?

According to the synopsis for the new episode, Floyd (Jean Smart) takes action against Kansas City. In episode 4 the Gerhardt matriarch was given an ultimatum by Joe Bulo (Brad Garrett) to give up the family business. However, at the end of the episode she chose war instead. Now the Gerhardts will be looking to strike.

Kansas City, though, will not sit idly by. The promo for the episode reveals that Mike Milligan (Bokeem Woodbine), whom fans found out Monday is sleeping with Simone (Rachel Keller), wants information from his Gerhardt girlfriend and appears ready to do whatever it takes to get it.

"I want to know what they are going to do before they do it," Mike tells her.

Meanwhile, Ed (Jesse Plemmons) and Peggy (Kirsten Dunst) need to start worrying about the Gerhardts as well. Hanzee (Zahn McClarnon) found Rye's (Kieran Culkin) belt buckle in the Blomquist's fireplace, so there is no question about who is responsible for the reckless mobster's death. Floyd wants revenge, telling her family in the promo, "I want this butcher dead. No mercy." That does not bode well for the in-over-their-heads couple. Maybe they should have taken Lou's help when he offered.

Elsewhere, Ronald Reagan is coming into town -- Karl (Nick Offerman) will not shake his hand because he starred in a movie with a monkey -- keeping Lou on the sidelines of the investigation. Plus, there is still that whole lingering aliens mystery.

What will go down between the Gerhardts and Kansas City? And what will Ed and Peggy do next? Fans will have to wait to find out. "Fargo" airs Mondays at 10 p.m. EST on FX.