The Third Step

The last phase of Naruto's Rasengan training hands him another balloon, but this round forbids popping it. The goal is to lock the whirling chakra into a stable ball, with the balloon acting only as a reference for the shape. This stage proves far harder than the two before it, and Naruto and Jiraiya cannot linger, since their hunt for Tsunade demands they keep on the move.

Over in Tanzaku Quarters, Orochimaru catches up with Tsunade. One look at his ruined state and she flatly turns down any thought of healing him, though she does press him on how his arms came to such harm. He blames a moment of sloppiness while taking the life of the Third Hokage. The remark cuts deep, given that the Third had been her mentor, and Orochimaru coldly suggests she ought to be accustomed to burying those she cares for.

Naruto begins the final Rasengan step, learning to hold spinning chakra in a sphere without bursting the balloon. Elsewhere, Orochimaru approaches Tsunade and asks to be healed, only to be refused. He admits his arms were crippled while killing the Third Hokage, wounding Tsunade with the reminder of her lost teacher and taunting her about her familiarity with grief.

Set during the Search for Tsunade arc, this is chapter 155 in the eighteenth volume. Its Viz edition carries the title The Third State. The chapter contrasts Naruto's grueling skill development with the emotional weight of Orochimaru's confrontation.