In an outline for a book analysis that reads,

Chapter 1

Characters

Setting

Conflict

Characters

Setting

Conflict

What is the most logical label for II?

Chapter 2

Secondary characters

Alternate settings

Internal conflict

The most logical label for the items listed in the second half of this outline is Chapter 2.

This is because the content in the second half of the outline is the same as that listed for Chapter One, so it is implied that the next outlined items would be for Chapter Two.