"He Could Be The One" is an episode where Miley repeatedly tries but fails to tell her dad that she's dating Jake Ryan again. Soon, Robby winds up believing that she's hiding something from him. To make her father thankful for Jake, she pretends to like her bad boy band mate Jesse, but gets in over her head when she starts to have feelings for him so it's up to Robby to help Miley listen to her heart and chose the guy who could "be the one." In the end, she tells Jesse that there is just something between her and Jake that is special and picks Jake after some help from a video of her mom and apparent divine intervention by her to help. Robby accepts their relationship after confirming with Miley that she made the right choice. Rico and Jackson just sing background commentary for the episode.
While singing, Rico knows Miley's secret identity, despite not knowing in the actual storyline. However, his performances with Jackson could've just been for entertainment, and not actually supposed to be inside the show.