After pushing Jess into a lake, Luke goes straight to Lorelai and admits she was right – he is completely out of his depth, and has no idea has to raise a troubled teenage boy. Lorelai immediately assures Luke that he can do it, but it’s going to take more than buying some new sheets to make it work. Luke did act as though just providing Jess with a safe and stable home environment was going to be enough to change his attitude.
Lorelai doesn’t tell Luke what to do, so she has learned one valuable lesson from their fight. Instead she asks Luke what he is going to do about Jess. It is his choice how he raises Jess. Their fight is made up when they both acknowledge they were wrong, and the end is signalled when Luke tells Lorelai she is allowed back at the diner.