Summary

Although Kaiba fights well against Ishizu, she still is unfazed by him thanks to her millennium item. When Ishizu has him cornered and nearly out decked, it seems that her vision will come true and that Kaiba will be defeated. Suddenly Kaiba receives a vision of his own from the millennium rod that might save him from Ishizu.

Major Events

Last Duel of the Battle City Quarter-finals.
Ishizu uses her Millennium Necklace to predict Seto's moves.
Seto tries to use Obelisk the Tormentor, but the Millennium Rod activates, telling him the only way to defeat Ishizu is by using the Blue-Eyes White Dragon.
The Millennium Necklace is beaten by the Millennium Rod.

DM-094 Obelisk the tormentor — Obelisk the tormentor

Notes

In this Duel's final turn, the timing of activation for Kaiba's "Soul Exchange" is unclear to determine: is it at the end of Ishizu's turn or during his own turn? It is however very likely that "Soul Exchange" is played as a Quick-Play Spell Card at the end of Ishizu's turn, otherwise Ishizu would have been free to attack Kaiba directly with her 3 monsters and win the duel. In this case however, the anime bends the rules a little because "Soul Exchange" is supposed to be a Normal Spell Card.

Even after Kaiba used "Soul Exchange" to summon "Obelisk the Tormentor", it's seen again when Kaiba is considering using the "Blue-Eyes White Dragon" instead.

Similarly, due to the particular way in which "Sacrifice Blast" (a.k.a. "Blast Held by a Tribute") works in the anime, it is shown to activate immediately after Kaiba takes control of Ishizu's monsters. In a subsequent scene displaying the Arena (after Kaiba summons his "Blue-Eyes White Dragon") both Duelists are shown to have no cards face-down on the field. This confirms that Ishizu's card has already been "activated", unbeknownst to Kaiba. This also significantly bends the real-game rules, since "Sacrifice Blast" would have to remain on the field until it is activated (presumably, at the moment "Obelisk the Tormentor" attacks). This requirement is however skipped for dramatic effect.

Obelisk destroyed as expected

When Kaiba sacrificed Zolga with Soul Exchange, Zolga's special ability should have activated, giving Ishizu an extra 2000 life points

Featured Duel: Seto Kaiba vs. Ishizu Ishtar - Part 2

Duel continued from previous episode.

Kaiba's turn
Kaiba activates his set Magic Card "Virus Cannon" to send 10 random Magic Cards from her Deck to her Graveyard. Ishizu pays 1000 Life Points (Ishizu: 2400 → 1400 Life Points) to activate Trap Card "Exchange of the Spirit" to switch the cards in both duelists' Deck with those in their Graveyard. This leaves Kaiba with 6 cards.

Ishizu's turn
Ishizu Normal Summons "Kelbek" in Attack Position (1500 ATK / 1800 DEF) and Sets 1 card.

Kaiba's turn
Kaiba activates Magic Card "Virus Cannon", but Ishizu activates "Muko" to negate its effect and destroy it. (NOTE: In real life, Muko is called "Null and Void".

Ishizu's turn
Ishizu Normal Summons "Zolga" (1700 ATK / 1200 DEF). "Zolga" attacks then destroys "Des Feral Imp" (Kaiba: 2950 → 2850 Life Points). "Kelbek" attacks Kaiba (Kaiba: 2850 → 1350 Life Points). Ishizu Sets 1 card.

Kaiba's turn
As Kaiba draws, Ishizu activates Trap Card "Muko" to send it to the Graveyard. Kaiba Sets 1 card. (NOTE: In the English dub, "Blast Held by a Tribute" can be seen in Kaiba's hand next to Obelisk. "Virus Cannon" is also back in his hand, even though he played it two turns ago and couldn't have redrawn it. These were most likely mistakes.)

Ishizu's turn
Ishizu Sets 1 card (Trap Card "Sacrifice Blast"). In the anime, Ishizu reveals (to the viewers, thinking to herself) that this Trap has already begun infusing its power into one of Ishizu's monsters ("Zolga"), so that when Kaiba uses "Cross Sacrifice" (replace by "Soul Exchange" in the Dub) to seize its control and tribute it, it will be transferred to the Tribute Summoned monster i.e. Kaiba's "Obelisk the Tormentor". And once Seto attacks her with Obelisk, he will lose. Normal Summons "Agido" (1500 ATK / 1300 DEF). Kaiba activates Magic Card "Cross Sacrifice" (replace by "Soul Exchange" in the Dub) to take control of "Zolga", "Kelbek", and "Agido" and tributes his three new monsters to Tribute Summon "Obelisk the Tormentor" in Attack Position (4000 ATK / 4000 DEF). (Note: If Ishizu did not summon another monster and attacked Kaiba directly with either of her monsters, she would definitely have won.)