In this episode of Naruto Shippuden 196 Tsunade received national Wanted List of criminals entering the land of fire. She orders Kakashi to create team 7 to watch their movements and learn their objective. Kakashi explains that things are not going well between Sasuke and Naruto. Tsunade recalls similarities in relationship with Jiraiya and Orochimaru.
Tsunade orders Naruto and Sakura to bodyguard and protect Naho, girl related to Feudal Lord. Lady Naho must go to Shizume Village for a land inspection however, Naho is overly excited to be guarded by Naruto and Sakura. She wants Sasuke to protect her as he once saved her life. Without Sasuke Naho isn't going anywhere... so ... Naruto must clone himself into Sasuke. As they walk through the forest they get arrested. What these criminals wanted was Naho.
Naruto wouldn't give Naho up for anything. With clone justu he starts fighting them, soon mudslide jutsu wipes all of Naruto (cloned for Sasuke). Naruto holds his own when he notices Naho being held at knife point and he loses. In the meantime Kakashi and real Sasuke try track them down. Kakashi left Pakkun with Sasuke as he explained that they hold better chances finding their way if they split.
Sasuke arrives and major battle begins. His opponent however doesn't seem to waver. He is resistant to Rasengan, various jutsus and Sharingan. He recognizes Uchiha clan, fought them even, and recalls that Sasuke's older brother Itachi killed the entire clan. Then Sasuke got really mad and unloaded his wrath at this criminal. When ordered to stop by Kakashi he abruptly left for the village.
Next episode of Naruto Shippuden makes Danzo a Hokage. In this Naruto Shippuden 197 Danzo orders Sasuke to leave village declaring him a rouge ninja. Naruto is not going to like this move as he is growing closer to Sasuke and feels sympathy for him. Title of next episode of Naruto Shippuden 197 is "The Sixth Hokage Danzo".