Originally Posted by shinobiknight
that question has been asked quite a few times, actually. The only possible explanation i see is that they tested him early in the hopes that having kyuubi in him would make him an elite shinobi by default. No luck.
so why didnt they do the same think to sasuke having the uchiha blood would make him a elite shinobi by default so imo he was talking about the usuall academy test he failed in the usaully academey test and iruka was warning him that if he doesnt improve he will fail in graduation test too