Naruto Episode 137: The Town of Outlaws. The Shadow of the Fuuma Clan.
Episode 137 of 220 of Naruto, aired June 1, 2005, 25 minutes. Available with English subtitles and dub where released.
Episode summary
Naruto, Sakura and Jiraiya end up in a town that is even worse than the one they were chased out of. Jiraiya heads off and leaves Naruto and Sakura to get some food. Along the way they find the ninja that attacked them before, but things are not as clearcut as they might seem.