Part 1 of Jiraira's novel in Tsunade's dream, only means that in the dream Jiraira would wrote another one since in her dream, he is still alive.
It's not Itachi's dream, it just a Itachi's story because Itachi is dead, he cant be dreaming.
Meanwhile there are a few that are still in a shelter and not exposed to the rinnegan who are not dreaming... Ooh like Naruto and Sauske and the remaining resurrected ....
All this while, hope they have not run out of air after all these months.
just when i thought the fillers are over, now again itachi's story, but then again itachi is my favorite character so i don't mind watching his backstory,and in a way i love the fact that they're keeping the series going with all these extras, else if they had done only the manga episodes then the series would've ended a long time ago. plus this episode was really good.