In this case, that's team 5. So, team 5 and the newly ranked teams 6 and 7 play. Once again, the loser is eliminated, and the first and second place teams continue on to the next game. This continues on up the ladder. Once team 2 and the newly ranked teams 3 and 4 have played, the first and second place teams continue on to the Finals.
Finals is a three game series, in which each team plays on each colour once.
This scheme is elegant because should a team have placed lower than they deserved during the Grid, they have the opportunity to make it up during the Ascension. And if teams whine during the Ascension, you can point out to them that since they came third due to some trivial disadvantage in this game, they almost certainly would have come third in the next game anyway. One point to note about this format is that the top ranked team gets a free ride into the Finals. You may therefore wish to offer them a short warm-up game, either right before Finals, or right before the last game of the Ascension. This scheme can obviously be scaled to handle any number of teams, from 4 upwards.