In the wake of Pain's devastation of the Hidden Leaf, the war hawk Danzo seizes the title of Sixth Hokage in this Shippuden episode. His first decree, an order to assassinate Sasuke, sends shockwaves through Team 7 and beyond.
Tracking Kabuto to one of Orochimaru's abandoned lairs with his ink mice, Sai is intercepted by Tokuma Hyuga's squad before he can move in. They inform his captain, Anko, that Sai has been recalled to Konoha at once while they assume his post in the reconnaissance unit. Pressed for an explanation, since Yamato had already rushed off citing an emergency, Tokuma delivers the news that Akatsuki has leveled the village, and that with Tsunade comatose, Danzo has been named Hokage.
Team Samui, arriving from Kumogakure, are stunned by the ruins that greet them. Samui carries the Fourth Raikage's letter meant for Tsunade, only to learn she cannot receive it. When she demands an audience with the acting leader, Danzo steps forward and declares himself the Sixth Hokage. The Raikage's message calls for action against the rogue Sasuke and for all gathered intelligence on him, and Danzo complies, issuing a formal order for Sasuke's death.
Danzo instructs Sai to shadow Naruto, vowing to spare the boy for now given his standing as a beloved village hero. Meanwhile, Kiba tracks down Naruto, Sakura, and Kakashi as they prepare to depart and passes along everything that has happened. Naruto and Sakura try to wring details about Danzo out of Sai, but he reveals a Cursed Tongue Eradication Seal that silences him, a mark branded on every Root operative to foil interrogation. Sakura's question about the assassination order visibly rattles Sai, who had not known of it.
The mere mention of Sasuke draws blades from Karui and Omoi, who reveal that he abducted their master and now serves Akatsuki. As Sakura breaks down, the two Kumo shinobi lash out at the trio for failing to grasp their grief. Recalling his own pain at Jiraiya's death, Naruto presses them on whether their captured master could be a jinchuriki, and when they confirm it, he assures them that Akatsuki takes jinchuriki alive, meaning the man still lives. Revealing that he too is a jinchuriki, Naruto offers to help search, and Karui accepts on the condition that he brief them about Sasuke along the way.

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Episode 197 adapts chapters 451 through 453 within the Five Kage Summit arc, airing in Japan on 10 February 2011 and in English on 13 July 2013. Its opening theme is Diver and its ending is Midnight Orchestra.
A parallel thread follows Taka on their march toward Konoha, halted by Madara. Sasuke insists his group has cut ties with Akatsuki, but Madara counters that their botched attempt to seize the Eight-Tails leaves a debt to repay. When Zetsu arrives with word of Danzo's appointment, Sasuke seethes, since Danzo was among the elders who pushed Itachi to slaughter the Uchiha. Madara adds that Pain destroyed the village, and Zetsu announces that a Five Kage Summit is being convened.
Danzo declares himself the Sixth Hokage in episode 197 of Naruto: Shippuden, "The Sixth Hokage Danzo," part of the Five Kage Summit arc.
No, Danzo names himself Sixth Hokage on his own initiative after Pain's attack leaves Tsunade comatose, rather than being formally chosen through normal succession.
Danzo is portrayed as a ruthless war hawk, issuing a formal order to assassinate Sasuke almost as soon as he takes power, and he is later revealed as one of the elders who pushed Itachi to slaughter the Uchiha clan.
Danzo is a Konoha elder and war hawk who seizes the title of Sixth Hokage after Pain's attack leaves Tsunade unable to lead, immediately ordering Sasuke's assassination.
Sai carries a Cursed Tongue Eradication Seal, a mark branded on every Root operative to silence them under interrogation, so he cannot reveal details about Danzo's assassination order even when pressed.
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