"Tale of Naruto Uzumaki" (うずまきナルト物語, Uzumaki Naruto Monogatari) is episode 174 of the Naruto: Shippūden anime.
Nagato completes his story and asks Naruto for his answer. Naruto answers that he is right, and he can't forgive Nagato and wishes to murder him badly. But then declares that since his master believed in a world where all people can get along, that he did to, and would not kill Pain. Naruto shows him Jiraiya's novel and shows him that it was dedicated to Nagato. He declares that he will break the cycle of hatred, despite not knowing how yet. Nagato remembers the story of the ninja against all odds, manages to defeat his opponent in the forest, and pictures himself as the shinobi. He recalls the man saying just what Naruto had resolved to do and being asked his name. Just right before he can say so in his head, Naruto yells out "Naruto!". Amazed by Naruto's determination to his answer, Nagato says that he would believe in him, and performs the Outer Path: Samsara of Heavenly Life Technique to try paying the debt for his sins.