Everyone is dead except for Jon and Qhorin, who cooks up a scheme to send Jon undercover. They try to escape through caves but that eagle seems to know where they are going and leads the wildlings to them. Sure enough, Jon pretends to yield, and Qhorin orders Jon to kill him to make the whole thing look more realistic. That's some hardcore badassery right there.
The wildlings still might not believe in this defection but Ygritte, the girl Jon freed, is there and she vouches for him.
Jon thinks they might return north to the mountains, but the wildlings are heading south. Those silly kings should have listened to the Night's Watch, I think!