The Speed Perception Challenge: In a brand-new challenge, the drivers are each put at the wheel of a decommissioned police cruiser, which has its instrument panel hidden behind a plastic shield (though a camera points behind the shield to show the crew the speedometer). They are then tasked with taking two runs; one where they drive in a straight line to 50 km/h, and one where they're asked to drive to 70 km/h and then brake sharply before hitting a "wall" made up of foam boxes. The difficulty of this challenge is demonstrated when Andrew fails his demonstration, driving at 75 km/h on the second part and hitting the boxes, though not hard enough to knock them over. Mariah has the first run, and despite her own admissions of habitual speeding is too slow in her first run, driving at just 38 km/h. She drives at almost exactly 70 km/h on the second part, but brakes too late and runs into the wall, failing the challenge. Tyler performs identically to Mariah on the first run, but Jason drives far too fast at 65 km/h. Chanie also drives too fast on her second run (80 km/h) and brakes far too late, resulting in her completely demolishing the wall and stopping several car lengths too far. Siham technically succeeds in the second part of the challenge, but her run is deemed a failure because Wayne was directing her speed throughout. George also drives too fast on his second run, and despite braking almost perfectly, still runs through the wall. It's then shown that during a meeting with Shyamala the previous day, George admitted being worried that he would pass his speeding habits on to his 16 year-old son Cody, to which Shayamala told him to be firm in ensuring that Cody doesn't break the law, but also to acknowledge that he will make mistakes as he learns. On top of that, it's revealed that Cody was secretly brought to the rehab centre two days prior, and has been watching footage of George's challenge performances, along with getting private lessons from Tim.
The Water-Tank Challenge: For this annual challenge, the drivers must navigate an early 1990s Volvo station wagon with a roof-mounted 300-litre water tank (which has been specially reinforced to prevent a recurrence of the incident the previous season when Shelby D'Souza accidentally broke the tank midway through his run) through a course designed to test their ability to drive smoothly. Andrew has another rocky demonstration, getting soaked three times and losing 25 litres of water. Tyler has the first run, and loses large amounts of water on every part of the course, along with knocking down a foam person in the final slalom; he sets the bar extremely low, losing 180 litres. While George only loses 60 litres (by far the smallest amount of any of the drivers), his braking and acceleration are erratic throughout the challenge, and the experts remain unimpressed by his attitude toward the challenges. Jason loses over half of the water on the opening straight alone due to jerky acceleration and sharp braking, and bizarrely decides to remove his new glasses halfway through the challenge, making things even worse, and he loses 150 litres. Siham also drives erratically throughout, and the experts note that Wayne's well-intentioned but poor advice is becoming as much of a problem as Siham's own lack of self-confidence; she loses 140 litres. Mariah loses 280 litres of water after a run so bad that most of it doesn't even get shown after she lets go of the steering wheel during the initial straight. Amazingly, Chanie loses the exact same amount of water due to repeated sharp braking.
Cadillac Challenge: Swerve and Avoid: In what is regarded one of the show's most important challenges due to its potential to save lives, each driver has to drive down a straight section at 70 km/h, toward two openings. An oversized foam birthday cake will then appear in one of the openings, and the driver must steer the car into the other opening, with looking where they want to go an important element of the challenge. Chanie, who still insists on wearing wedges despite Andrew's pleas to the contrary, fails her first attempt disastrously, failing to look where she wants to go, stomping on the brakes, locking them up, then skidding directly into the lane that the cake appeared in. On her second attempt however, she manages to steer into the correct lane, passing her first challenge. Before George's run, more footage of Tim's private lessons with Cody is shown, and Cody is quickly becoming aware of the faults in his father's (and his own) techniques. When he takes his run, George drives at 80 km/h, but still successfully passes the challenge. Siham fails her first run by initially steering toward the cake, and failing to correct her in time, with Wayne's continued chatter only making things worse. Adding insult to injury, the Cadillac's front bumper, which had already been badly damaged in Chanie's first run, detaches itself from the car. On her second run she chooses her lane before the cake even appears, which would have been a failure regardless, and the failure is confirmed when the cake appears in that lane; on top of that, she also locked up the brakes and skidded for 15 metres. Jason fails his first attempt when he looks at and steers directly into the cake, but passes on his second go after Andrew reminds him to look where he wants to go. In a break from his usual habits, Tyler actually drives too fast (at 90 km/h), and fails his first run by steering directly into the cake. He drives at the right speed on his second run, but again drives straight into the cake; this leaves Tyler as the only remaining driver not to have passed a single challenge so far. On Mariah's first run she fixates on the wall dividing the two exits, never sees the cake and smashes directly through the wall. Despite Jessica pointing out that she saw the cake with plenty of time to spare, Mariah refuses to acknowledge that it ever popped out; because of her refusal to take responsibility for her error, she is barred from taking her second run.
After the Swerve and Avoid, George is finally told that Cody has been brought to rehab, and he takes George and Andrew on a quick drive through the surrounding area to demonstrate that, if anything, Cody is now an even better driver than his father. During this drive, George admits that he was a terrible teacher, and is proud of his son.
While Jason feels that he deserves to graduate, the experts quickly agree that the overwhelmingly obvious choice to graduate is George, who has already been passed over twice and performed the best in all three of the episode's challenges; the clear improvement in his attitude and the experts no longer needing to worry about him passing on bad habits to Cody helps seal the decision, and George becomes the third graduate.
