1. Linda is at that point in the hospital and more specifically Park Lane Hospital for the Dying and John has come there to visit her. The head nurse is perplexed with John as she can't understand why would some one visit those who are dying as the society there left individuality behind and for them the death is a beneficial state.
2.The head nurse tries to lets call it death condition young kids who are
there by mixing fun and games with death so they will not see death as
something scary. They start making fun of Linda who is dying and John
tosses one of the boys. This is why the nurse is afraid that John will interfere with her conditioning efforts.
3. After John's outburst, the Nurse is concerned for the boys and their conditioning. While John is busy with Linda who is in a really bad state, she approaches the children and tries to get their conditioning on track by offering them chocolate.