The One Where Ross And Rachel Take A Break - S3-E15
Revealing mistake: In the scene where Ross brings the picnic basket to Rachel's office, he lights a candle and puts it near a plant (which then sets it on fire). However, the candle is barely (if at all) close enough to set it alight, and when it does, a huge flame just erupts from the middle of the plant, not the edge where the candle was.
Answer: Usually by the seventh night of Hanukkah you don't know what to get the other person, and you will probably resort to getting the other person something insignificant. Chandler is basically saying that the pen is a stupid gift.