After you help Bear find the ring that he lost and defeat SV Snaggerjag, your Dad forgets some important papers at the station.
Go to the train station (Sunshine Station) in Blossom Heights and talk to the Station Staff guy outside. He'll give you Dad's papers.
The Big City
The next train will take you downtown, so check on the station entrance to take the train to Springdale Central Station. Go out the south exit.
Suddenly there are a bunch of Yo-kai everywhere. These Wazzats make people forgetful. You have to go to your Dad's office without letting a Wazzat catch you, and you have to get there in three minutes.
On the map you will see that the roads are blocked by Wazzats in certain places. You can run past these Wazzats as long as you are careful. Check on the front door of your Dad's office building to go in.
Not Over 'til It's Over
The Wazzats get into the office building, so quickly go to the upper-left of the room and check on an elevator. You'll automatically give your Dad the papers and his meeting will go well.
Afterward, you'll be on the first floor again. When you go outside, Wazzats will Inspirit you and Whisper! After they let you go, you can explore downtown, but you should go find the Wazzats when you're ready. You might encounter random Wazzats if you explore the area, but to continue the quest, you have to find the specific Wazzat that Inspirited you.
Go to the street corner northeast of the train station. Talk to the Wazzat that is floating there. It crosses the street, so press the crosswalk button, then cross when it's green.
The Wazzat is at the bakery, so go northwest to get there. Talk to the Wazzat. It Inspirited people because it just wanted a friend. So you befriend it. This ends the chapter. Next up is Kyubi the Bully.