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Answer from: NiceGuy1
******* WARNING! Spoilers! *********
In the game, "recovering" the Fist Of Arkus ends up really being "get it away from Kaos". At the end of Chapter 16, you'll meet Kaos as a giant robot, and then have to run away from him, down a long path. After this you get a cutscene, and your old pal the Robot Ghost - in his robot - will start fighting Kaos. Now you have to attack the fist and Kaos' head in between fighting the normal enemies he throws at you. Once you've damaged the Fist enough, that's it, you won the game. You'll see a cutscene that shows Kaos losing the fist, chasing after it, and losing it for good.