Identify Yourself: Powerful New Rivals

is episode 21 of the original Naruto anime.

Synopsis
As the Sand Siblings are introduced, Gaara scolds Kankurō for his abuse of the kids. Gaara then apologises to Sasuke for Kankurō's behaviour. The three are ninja from the sand village, they are in Konoha for the Chūnin Exams.

The Third Hokage asks Kakashi, Asuma and Kurenai to step forward and recommend any genin they believe to be fit to take the Chūnin Exams. Iruka thinks that the rookies need more time, and that there is no way that any of them will be recommended. However, all three jōnin recommend their students which shocks Iruka greatly. Iruka challenges their decision, as he believes Naruto and the others are not ready for the exam. They however stand by their decision and the Hokage agrees, but only after Kakashi reminds Iruka they are no longer his students, but ninja under his command. The next morning Kakashi gives squad 7 the application forms for the Chūnin Exams. Both Sasuke and Naruto accept, but Sakura is uncertain.

Later, all three of Team 7 are attacked by a mysterious ninja from a different village. Moegi is captured and Naruto saves her, but the mysterious ninja escapes. Sakura is taken in by a genjutsu but quickly figures it out, but is still uncertain about the exam and Sasuke easily defeats the ninja, telling him to stay out of his village. The ninja was Iruka in disguise. He reports to Kakashi, confirming they all passed the test. Inside the school where registration is taking place two shinobi bar the way warning them about the exam. The altercation nearly comes to blows but Rock Lee blocks stops this, surprising Sasuke. Rock Lee later goes after Sasuke and challenges him to a duel.

Trivia

 * Iruka testing the members of Team 7 is unique to the anime.