Randy accidentally offends black people on Wheel of Fortune by guessing the word "Ni-ggers" instead of "Naggers", causing trouble for his son at school, while Cartman gets caught up in a fight with a little person that visits his school.
Randy is on Wheel of Fortune, and has made it to the Bonus round. The episode is airing live, with his family watching him from the audience and the South Park residents watching from home. He has to solve a puzzle in the category: "People Who Annoy You". He is given the letters R - S - T - L and E. Then he asks for the letters B - N - G - O. This leaves him with only one letter to solve in the puzzle, N_GGERS. Randy is hesitant to say the answer, not sure if it is appropriate. He is encouraged and rushed by the timer, and yells out, "Ni-ggers!", which shocks his friends, family, millions of viewers nationwide, and angering a population of African-Americans. He gets the puzzle wrong though, the correct answer being "naggers".
Stan goes to school the next day, knowing his father had just said Ni-ggers over live television. Cartman brings his attention to Token, and that he is going to want to beat the crap out of Stan. He goes to Token to try and explain, saying his father isn't racist but is just stupid. Cartman, seeing an opportunity to cause conflict, tries to get the two into a "Race War". Token, instead of fighting, walks away. Cartman sees this as a forfeit, running away while screaming "Whites Win!"
Randy, seeking forgiveness, goes to Jesse Jackson to apologize. Jackson bends over his desk and tells Randy to apologize by kissing his butt. Randy does so, and a picture is taken which is put into the news. Stan seeks out Token, expecting everything to be better now since his dad apologized, yet Token is still mad, saying, "Jesse Jackson is not the emperor of black people!" To which Stan replies, "He told my dad he was..."
The school, in light of the recent events, hires Dr. David Nelson to talk to the students about sensitivity. He is a little person, and when Dr. Nelson walks on stage, Cartman laughs uncontrollably, giving Dr. Nelson no chance to talk.
Randy goes to a comedy club, but is singled out by the comedian, calling him the 'Ni-gger-Guy.' Everyone starts to call him 'Ni-gger-Guy', which makes him feel like an outcast. Dr. Nelson talks to Principal Victoria and Mr. Mackey about Cartman, and asks them to have him meet with him. When Cartman comes in though, all he can do is laugh and make fun of him. Dr. Nelson keeps on saying that Eric's words don't hurt him, but as Cartman keeps on laughing Dr. Nelson loses his temper and yells at him saying, "Shut your fucking mouth!" Stan once again confronts Token, but this time to say he understands how Token feels about the word Ni-gger after how he saw Cartman laugh at Dr. Nelson. Token is still mad at him though, not really thinking he understands. After this, Dr. Nelson calls all of the students to the Gymnasium to teach Cartman a lesson. He wants them all to yell, "Hello Fatso!" when he walks in so he understands how it feels. They do this, and Eric responds angrily, but when Dr. Nelson comes out to scold him again, he breaks up in laughter again.
In further attempts to clear his name and make people stop calling him 'Ni-gger-Guy', Randy opens up the Randy Marsh African American Scholarship Foundation. When walking away from the grand opening, he is chased by Rednecks carrying shotguns, who are mad at him for slandering an entire race of people. He is saved abruptly by other 'Ni-gger-Guys' led by Michael Richards from Seinfeld. The rednecks run off, and the 'Ni-gger-Guys' accept him into their ranks. Stan gets fed up with Token, and demands to know why he is still angry. The two are interrupted though by Butters who tells them Cartman is going to fight Dr. Nelson, and the three run off to go see.
Dr. Nelson, a black belt in karate, has also had enough, and plans to beat the crap out of Cartman to prove his point- that words shouldn't hurt you. The two start to fight, and Cartman easily gets the upper hand. In Washington D.C., at the White House, the 'Ni-gger-Guys' are pleading their case to the senate to ban the word 'Ni-gger-Guy'. The notion is passed by the senate who don't want to be considered 'Ni-gger-Guys'. As a result, anyone saying the word Ni-gger and Guy seven words close to each other would be prosecuted and fined. Dr. Nelson 'gives up' after being pinned by Cartman, and then proceeds to take a cheap shot at Cartman. The latter of course is ultimately unfazed and continues to laugh. Dr. Nelson storms off, saying he 'proved' his point, which all the students never actually understood. It is then that Stan understands that he doesn't get it. He tells Token that he will never understand how it feels to have the word Ni-gger against him because he isn't black, which was what Token was looking to hear all along.