Plot hole: The fact that Buddy placed the knife and note in the steering wheel of Jerry's car is unrealistic. Buddy first met Jerry in the bathroom after school started and Jerry hasn't gone outside of the school building to his car until this point later in the morning... so there's no way that Buddy could have known which car was Jerry's to pull this stunt.
Three O'Clock High (1987)
Ending / spoiler
Directed by: Phil Joanou
Starring: Casey Siemaszko, Richard Tyson, Stacey Glick, Annie Ryan
Jerry convinces Buddy to forget about the fight by paying him money he stole from the student store. Buddy humiliates Jerry by telling him he is a coward for not even trying to fight. Jerry then decides he will fight Buddy. They meet outside of school at 3 o'clock and the whole school is there. Jerry winds up beating Buddy in the fight and is considered a legend. Jerry winds up dating his friend. The day after the fight, all of the kids in school try to help Jerry pay back the money he stole from the student store. Buddy Rouvelle walks in and gives Jerry back the money. Jerry is then asked out by Karen, the prettiest girl in school, but he says no because he is dating his friend.
Lisa
Mr. O'Rourke: Don't fuck this up, Mitchell.
Question: One thing I never understood in the movie. At the end right before the final punch, the principal sits up and says "don't fuck this up Mitchell." Was he referring to not losing the fight? Was he referring to his school career? It is hard to tell especially since he saved Mitchell from the police, then smiled and nodded at him before walking away.
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Answer: He's telling him to win the fight. The principal knows if the bully isn't defeated, he'll continue to harass him and the students. He believes if the bully loses the fight, he'll no longer be a problem at the school.