What happened when there were 3 tugs on the string

Before he leaves the peach, James instructs his friends to begin pulling on the rope when they feel three tugs. Soon James is gone, and the others believe that both James and the Centipede have been lost forever, when suddenly they feel three tugs and pull the two of them up. They are both soaking wet, and Centipede tells everyone that James swam around the ocean until he found and rescued him.

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