Can anyone tell me if Terry's daughter is pregnant or not? Yes
What happens with Kate too?
I can't remember what happens up to the end of episode 3, but Kate takes JJ's car one night and drives back to the immigration entry place where she had her photo taken, seduces the photographer, nicks his keys and then breaks into the filing cabinet containing all the photographs of emigrants to look for her son's entry card so she can find where he went. She finds it and discovers which Catholic children's home he was sent to. It's quite far away. The photographer catches her in the act, but feels sorry for her and agrees to help her.
Kate's ex (who we're led to believe is abusive, but actually isn't), then shows up in Australia and tries to persuade her to leave it and that Michael is better off now, but she won't. The photographer lends her his car and she and Annie drive up to the children's home. She tells the priest in charge that she's a married woman looking to adopt, but he sees she isn't wearing a wedding ring and tells her to leave. She is distraught and causes a scene.
A little while later, she at work when she sees Michael coming for a routine injection with his adoptive parents. She chases after them, but they get in their car and drive away. She then breaks into matron's office to find his patient information and address. She again gets caught and is fired, but her boss hands her the card with the info on it. She then goes to the house where Michael is living, no one is home, so she breaks in and then falls asleep on his bed, then sneaks out of the house when they come back.
She then returns to the house, pretending to be a social worker, questions the adoptive mother and Michael and behaves suspiciously, hugging him and telling him she'll see him very soon. Then she turns up at his school gate and persuades him to get in her car, tells him she's his real mother (he hasn't recognised her) and says they're going for a little drive. The end.