You Failed! Kakashi's Final Decision

is episode 5 of the original Naruto anime.

Synopsis
It is revealed that Kakashi had in fact used a "Substitution Jutsu" to evade Sasuke's volley of kunai and shuriken. In his place is a smoking, pin-cushioned log, which drops to the ground. Kakashi reappears and resumes the fight with the students, paying more attention to Sasuke and Naruto than Sakura, who is in hiding in some bushes. As Sasuke and Kakashi battle farther away, Naruto, who had been dangling upside-down from a snare, manages to free himself with a kunai. Unfortunately for Naruto, he merely activates a snare that was placed underneath the initial snare. He is left dangling from the second snare.

The melee continues as Kakashi exploits each of the member's weaknesses. Kakashi deals with Sakura by luring her into a genjutsu, which in this case is Demonic Illusion: Hell Viewing Technique. The genjutsu causes Sakura to see Sasuke pierced with twenty or so kunai knives, and she faints pathetically.

Sasuke continues combating Kakashi, and Sasuke uses Great Fireball Technique. Kakashi is apparently roasted in the flames; however, Kakashi is revealed to have evaded the technique. Kakashi then uses Earth Release: Double Suicide Decapitation Technique to pull down Sasuke so that only his head is above ground. Kakashi tells Sasuke that while he is indeed different from the other two, that doesn't make him better than them.

Meanwhile, Naruto notices two boxed lunches on top of a rock and bush formation. Being extremely hungry from skipping breakfast, he attempts to eat the food, but is caught by Kakashi and tied to a wooden post.

Sakura, who at this point is released from the genjutsu, finds Sasuke's head and faints since he is apparently a head with no body. When Sasuke talks to her, she then realizes that he is indeed alive and is greatly relieved. Sasuke, on the other hand, is frustrated and annoyed that Sakura is getting in his way.

Suddenly, the time is up. It is now noon, and none of them have gotten a bell. Kakashi tells them that they will not be sent back to the Academy, they'll instead be dropped from the training program. Naruto demands to know why he would change his mind, and Kakashi says that they failed to understand the point of his training exercise. Neither of the team manage to figure it out so an exasperated Kakashi explains it: teamwork. Had the team worked together, they would have had a chance of taking the bells. When Sakura points out that there were only two bells, Kakashi explains that he had set it up this way to see if any of them could place the team above themselves. Instead, due to Sasuke's arrogance, Sakura's obsession with Sasuke, and Naruto's attempt to do everything by himself, the team failed.

Kakashi ambles to the stone formation and gazes at it, stating that the names of some of the village's greatest warriors are engraved upon it. Naruto exclaims that he wishes to have his name engraved upon the stone as well one day, to which Kakashi mutters that every person on the tablet had sacrificed their life for the village, which silences Team 7. Kakashi then apparently relents and states that they will have one last try after lunch. The catch is that Naruto would not be permitted to eat because of his attempt to steal the lunches. Kakashi sternly admonishes them that any member of the team caught giving Naruto food will fail, and then he disappears.

As Sakura and Sasuke eat, Naruto's stomach moans pitifully, and his face is contorted with pain because of his hunger. Sasuke turns around and offers Naruto some of his lunch; Sasuke states that he does not sense Kakashi nearby and that Naruto would be a liability to them later since his weakness would impair their teamwork. Sakura sees this and offers Naruto her food as well, though she is none too happy about having to feed him since Naruto's hands were tied to the post. As soon as Naruto is fed, a puff of smoke announces Kakashi's appearance.

As Kakashi apparently prepares to punish them all, Sakura explains that they gave Naruto food because he's a member of their team. Kakashi apparently scoffs at this excuse, but then announces that they have all passed his test.

He informs the team that they are the first team to ever pass his test and that they are now officially his students. He explains one of a ninja's most important rules: Those who break the rules are scum, but those who abandon their friends are worse than scum.

The jubilant team departs the training area, except for Naruto, who is still tied to the pole despite his pleas for help.