Multiple Traps! Countdown to Destruction

is episode 201 of the original Naruto anime.

Synopsis
Naruto pursues Gennou to the mountains at the back of town, and hears that he plans to detonate explosive tags there, burying Konoha in a massive rockslide. Before he can do so, Naruto's friends arrive, Hinata having informed them where he was going. They combine their efforts to prevent him from detonating tags, and manage to save the village. Gennou dies after saying that he wanted his son to enjoy another scavenger hunt, and the group realizes that while he had initially intended to destroy Konoha, because Naruto reminded him of his son, he made his traps into a scavenger hunt. Hence, Konoha was actually in no real danger.