The Identity Reveal: The Red Hood is confirmed to be Jason Todd, resurrected via the Lazarus Pit by Ra's al Ghul, who felt guilty for hiring the Joker. The pit restored his life but shattered his mind.
The Final Ultimatum: Jason captures the Joker and forces Batman into a room with them. He gives Batman a gun and an ultimatum: Jason will kill the Joker on the count of three unless Batman shoots Jason first. Jason wants Batman to choose him (by killing the Joker) over his moral code.
The Resolution: Batman refuses to kill the Joker. As Jason pulls the trigger, Batman throws a batarang, jamming Jason's gun (or injuring his hand). In the confusion, the Joker activates a bomb. Batman saves the Joker (and himself), while Jason vanishes in the explosion. The film ends with the Joker back in Arkham and Jason's fate left ambiguous, though he is known to be alive. A final flashback shows Jason's first day as Robin, highlighting the tragedy of the happy boy who was lost.