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The trio stumble upon a [[Ku Klux Klan]] rally, who are planning to lynch Tommy. The trio disguise themselves as Klansmen and move to rescue Tommy. However, Big Dan, a Klan member, reveals their identities. Chaos ensues, and the [[Grand Wizard]] reveals himself as Homer Stokes, a candidate in the upcoming gubernatorial election. The trio rush Tommy away and cut the supports of a large burning cross, immolating Big Dan.
Everett persuades Pete, Delmar and Tommy to help him win his wife back. They sneak into a Stokes campaign gala dinner she is attending, disguised as musicians. The group begins a performance of their radio hit. The crowd recognizes the song and goes wild. Homer recognizes them as the group who humiliated his mob. When he demands the group be arrested and reveals his white supremacist views, the crowd [[Riding a rail|runs him out of town on a rail]]. Pappy O'Daniel, the incumbent candidate, seizes the opportunity, endorses the Soggy Bottom Boys and grants them full pardons. Penny agrees to
The next morning, the group sets out to retrieve the ring, which is at a cabin in the valley which Everett had earlier claimed was the location of his treasure. The police, having learned of the place from Pete, arrest the group. Dismissing their claims of having received pardons, Sheriff Cooley orders them hanged. As Everett prays to God, the valley is flooded{{efn|The flood is the result of reservoir construction by the [[Tennessee Valley Authority]].}} and they are saved. Tommy finds the ring in a desk that floats by, and they return to town. However, when Everett presents the ring to Penny, it turns out it was her aunt's ring. She declares that she will not marry him with that ring, but only her wedding ring, which is still lost.
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