Yes, although they actually accomplish harmony in the third-to-last episode. The last episode is about Doc leaving (after having discovered the Fraggles in the next-to-last episode).
Basically, in the third-to-last episode Junior finds out he'll be king soon (almost all the leaves have fallen off the Nirvana Tree, which is how they determine the end of a king's rule). To prevent this from happening, he rips the last one off (which he assumes won't count as falling), and eats it (to "destroy the evidence"). This shrinks him down, and he meets with the Fraggles, and learns how they're all interconnected (he loves growing radishes, Doozers love building with them, and Fraggles love eating them). Then his dad tries to blow up Fraggle Rock, and he disarms the bomb, then goes back and tell his father if he knew anything about ruling the Universe he would never have done that.
Then Junior becomes the king, and announces that the Universe doesn't need one, and dissolves the monarchy as his first act as ruler, because the Fraggles had taught him that you can't be the boss of anyone else (yes, a kid's show endorsed collective anarchism. I still find it hard to believe there weren't more furious parents).
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