Coulson and S.H.I.E.L.D. received the unofficial approval from the President. Coulson's former nemesis, General Glen Talbot, has been appointed the new head of the ACTU (Advanced Threat Containment Unit). Grant Ward's body is transforming into something else with HYDRA.
Warning: Spoilers for season 3, episode 12 of Marvel's Agents of S.H.I.E.L.D., "Inside Man," will be discussed below.
Grant Ward is Transforming into The Hive
Grant Ward died on Maveth. The ancient alien entity, the Hive, trapped on the alien planet took control of Ward's dead body. Found by Gideon Malick, he is now recuperating and catching up on what the human race is up to. Malick is gathering Inhumans for Hive, and we see the most recent arrival's powers don't work on him. When asked if he needed a new body, Hive mentions he can't inhabit an Inhuman body. He requests five humans and unleashes his powers on them in order to feed. Eventually Ward's body appears to be healed. Hive is getting stronger.
Creel Returns and is Working for Talbot
The agents are surprised to see the return of Crusher Creel, the Absorbing Man. Through some creative teamwork, they managed to subdue him only to find he's working with General Talbot as his bodyguard. The others, especially Hunter, are outraged because he killed some former S.H.I.E.L.D. agents (in Season 2, Episode 1). Talbot fully trusts him and says Creel was brainwashed before.
Creel's Blood Could Stop the Inhuman Terrigenesis
We find out a little more about Creel. His powers came from an experiment. Examining his blood, they apply it to an old sample of Daisy's blood from before she changed. The blood can actually prevent Terrigenesis from happening. The possible vaccine won't work on Inhumans that have already transformed, but it could prevent it from happening in others.
Talbot is the "Inside Man" for Malick
Coulson and Talbot had a difference of opinions before, but they were able to work together at some level. They attend a conference dealing with the surge of aliens/Inhumans alongside leaders from other nations. When the time comes to vote on a plan of action, Talbot calls it off and orders Coulson to be arrested. Malick shows up and tells everyone Coulson is actually the director of HYDRA.
Coulson knew someone there was a traitor and is surprised to discover it was Talbot. Talbot's son is an Inhuman, and Malick has him in custody. Talbot was being blackmailed as soon as he was appointed the head of the ACTU. Coulson and his agents are able to rescue Talbot's son.
Daisy and Lincoln Take Things to the Next Level
With the possibility of a vaccine against Terrigenesis through Creel's blood, Daisy and Lincoln had a huge argument. Lincoln believes not everyone that can change, should. He feels they should be selective and give only some a choice. Daisy doesn't agree, and things get pretty heated.
Later, things heat up in another way. Daisy apologizes to Lincoln. They start kissing and take things further.
Thoughts
The episode delivers twists and action while taking the story further. Coulson and Talbot managed to work together up until Talbot's betrayal. With Malick's hold over him taken care of, they can move forward with a new take on their working relationship. Talbot has a new level of respect for Coulson now. Coulson being alive after he was killed by Loki in The Avengers could start to become public knowledge. No one in the movies, besides Nick Fury and Maria Hill, knows he's still alive.
Daisy and Lincoln's relationship still feels weird. They were almost like brother and sister when she first discovered she was an Inhuman. We've already seen them have a big disagreement. Moving to another level in their personal relationship could cause problems when out in the field.
Creel's blood as a vaccine provides an interesting twist. It feels like the groundwork for a Civil War type situation in the show. This could have added another component to the upcoming movie. Unfortunately, Inhumans will not be a factor in the plot of the movie.
Hive's transformation is making him a creepier character. It was interesting to see the Inhuman's ability failed to work on Hive. Does this mean he's immune to all Inhumans' powers or just this one? Could Daisy or Lincoln use their powers against Hive? The end scene with Hive and all the goo is something people will be talking about. At a set visit last week, it was a topic that kept getting brought up. You can find details on the visit coming up this week on Comic Vine.