The principal gave a speech comparing the two groups of students that were present, one who gave up on their future while the others are still in school. He wanted to motivated them so they feel that they are not less superior in society and the first thing they would have to do is pass the exam.
Eddy gets a zit, which Double D tells him is a natural part of growing up. Eddy is embarrassed about it and tries to hide from the other kids. Ed finds the zit funny and gets Johnny to come over and see it, to Eddy's dismay.