In the handout sent home about part tests there is a small typo that makes quite a big difference.
It reads under #4:
4. Tests are Pass/Fail.
1. General comprehension of the notes, rhythms, and appropriate musicality is expected. Small mistakes will result in a failing grade. Not knowing how to play your part most likely will result in a failing grade.
That part in bold SHOULD have read: Small mistakes will NOT result in a failing grade.
My apologies for the error/panic.