The way that the return of peter connects to the overall plot is that it shows the rising action and also shows tension and mystery.
This is the part of the story that often times leads to the climax of the story. It is the story that is unfolding.
The return of Pete shows that people are terrified. The passage says that a couple of mothers started grabbing their children out of fear.
Read more on the rising action of a story here:
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