Kiyotaka suggests that Kikyou may have sold out Class D for private points from another class, and if Suzune ever wants to lead the class, having a traitor among them is an intolerable threat. When Kikyou joins them to scout Team White, Suzune comes right out and asks if Kikyou betrayed the class, and of course Kikyou denies it, asking that they trust her.
The day of the sports festival, Sudou is full of vim, vinegar, and confidence that he’ll be able to lead Class D to victory, aiming for a clean sweep. Arisu quietly observes under a tent, paying particular attention to Kiyotaka, whom she no doubt understands is D’s true mastermind.
After getting out to a comfortable lead, things start going all Scuderia Ferrari on Class D. Sudou is beaten down by a cheating Ryuen outside of the watch of any teachers. Suzune collides with a Class-C girl and injures her ankle, suspecting it was intentional. The ace of the boys is increasingly pissed off, while the ace of the girls is hurt.
When the girls lose the Piggyback Joust, Sudou vows to Hiyotaka (on whom he has a crush) that he’ll win enough for the both of them, but he loses too. Hiyotaka rattles Suzune’s cage, telling her to “be useful” for once as she’s the only one who can bring back Sudou after he flips out and quits. Kei asks Kioyotaka if there’s any chance they can come back from their deficit; Kiyotaka says he never had any intention of winning.
No, his goal is to lose as much as possible. As for why their participation list was submitted when he knew there’d be a leak, he says it was Suzune’s idea. Finally, just as Kiyotaka is trying to track down Sudou, Kikyou tells her she’s wanted in the nurse’s office, where she not only finds a severely injured Class-C girl she collided with, but Ryuen as well.
The girl, no doubt manipulated by Ryuen (her injury might not even be real, but if it is, that makes him that much more of a jerk), accuses Suzune of intentionally injuring her. Not wanting to cause trouble for her StuCo president brother, Suzune asks what she can do for the complaint to be dropped. Ryuen says he needs a million private points…and to grovel before her after the festival.
So yeah, Class D and Suzune in particular are going through some shit. When she crosses paths with her brother, she’s happy he even bothered to stop to hear her say she realizes how incompetent she is, but she’s resolved not to cause trouble for him. And all of this shit she’s enduring is being either passively or actively endorsed and/or caused by Kiyotaka.
To what end? The title of the episode is the clue: Every failure is a step to success. Kiyotaka isn’t interested in fun or easy victories. They won’t become Class A that way. No, they have to fail and suffer again and again and again, harden themselves, and use what they’ve learned from those failures to succeed when it matters most.