xD, that part was just damn hilarious. xD
I did see the preview for the next episode when watching episode 2, but I didn't notice Merle, I noticed the head guy of that city, but he didn't see like Merle to me.
Also, that makes sense, if the people in the city, or the "boss" of the city, are/is looking for Rick and his group, the person who was watching Carol doesn't belong to that city. I wonder who that person might be...