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The gang met up with McCarthy and they were reading over some of their notes. McCarthy found a connection between the notes and he figured out what P.C. meant. P.C. stands for the Phantom Communist meaning that their true identity was a secret.
I believe that P.C. stands for the Phantom Communist.
At Fred's house the gang listens as Fred explains the plan that he came up with to stop the attacks.
As Daphne, Fred, Velma, and McCarthy were sitting undercover in the restaurant they heard, Scooby, Scrappy, and Shaggy screaming in the back. When they got back there to check, all of them wer in a net including the Phantom Communist. In the end, Lee Grant was one of the helpers who attacked the restaurant but the gang also learned that there was more than one person in the business.
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