George is outside hanging the washing up when Judy comes round and asks if Lynne is about. George tells her that she is still sleeping like a log. The phone rings. George answers it and tells 'Mantha that Lynne hasn't surfaced yet and that he can't waken her for love or money. Lynne then appears and tells George that he never tried money.
It is a warm day and George sees this as an ideal opportunity to hang the washing outside to dry. As he says that Lynne is still sleeping, this must be a Saturday morning, but late morning as Judy expected her to be up. George realised he had no clean clothes, hence why he is only wearing his pants, so had to get up and do a wash. He'll have to stay like that until his clothes dry. If he really is down to his last clothes, it's a wonder why he is putting out Lynne's underwear to dry first.
When George answers the phone, he is still in his underwear, so his clothes haven't dried yet. When Lynne appears she is also without clothes. It seems George was right to put Lynne's clothes out to dry. Whereas he has at least one pair of clean pants, Lynne has none and so has to walk around in the nude until her clothes are dry.
Lynne has been eavesdropping George's phone conversation with 'Mantha. She must not want to talk to 'Mantha if she heard the conversation as she did not interrupt George to tell him she was up. This makes you wonder whether she didn't want to talk to Judy either. The more believable reason would be that she didn't want to talk to Judy whilst naked. A little awkward.