Inside the tower, Naruto and Sakura open each of their scrolls, which summons Iruka-sensi. He smiles happily declaring the Second Exam finished. They have passed and he’d like to treat them to ramen at Ichiraku. Happily, Naruto jumps for joy at the suggestion. Sasuke asks what would have happened if they would have looked at the scrolls during the Exam. Iruka explains that if they were to break the rules and open the scroll during the Exam, he was ordered to knock out the examinees until the Second Exam ended.
Sakura then asks what the scroll on the wall means. Iruka explains that this is what Hokage-sama wrote as the underlying principle of being a Chuunin. The “Heaven” points to the head of a person. The “Earth” is the body. For example, if Naruto’s weakness is his brains, he should study and prepare for his missions. For those, like Sakura, who don’t possess strength, they should train every day. Once they have both attributes, any dangerous missions will become safe. Sakura asks about the missing letter. He explains that’s the “human” letter in the scrolls that goes there. The survival mission of the past five days tested the basic abilities of the examinees as a Chuunin. They’ve completed it. A Chuunin is a commanding class and has the ability to lead a team. They must understand the importance of knowledge and strength in missions.
Iruka-sensei then expresses concern that the three are pushing themselves. Naruto tells him not to worry. He’s a ninja now. Iruka thinks back to when he asked Anko to be their informer. He was the one to argue that he knows their abilities better than anyone… even Kakashi. If they can’t make it through, he wanted to be the one to tell them. Anko had high hopes for them at the time, particularly since they were Kakashi’s team. He thinks back to when Kakashi recommended them to take the Chuunin and his initial opposition, believing that they weren’t ready yet. He then realizes how far along they’ve come.
Anko sits in the Hokage’s office holding her cursed seal. One of the Konoha nins in the room asks if Orochimaru is one of the Sannin from the Konoha legends. He’s an S-Class exiled ninja that even ANBU couldn’t deal with. They wonder why he came back to Konoha. Anko remembers Orochimaru’s words… he wants Sasuke. Soon, she is informed that 21 people passed the Second Exam. According to Chuunin regulations, they will have to do preliminary matches for the first time in five years. The Second Exam is now officially over.
Anko congratulates the 21 students out of 78 who passed the Second Exam. She was expecting only about 10. Gai-sensei talks crap about Kakashi’s team, but Kakashi completely ignores him, much to Gai-sensei’s dismay. Lee vows he will never lose again… he will never see the tears of an important person again. All the rookies from Konoha passed. They all look around observing who is left.
The Hokage declares the start of the Third Exam, but first he explains the true purpose of the exam. The Chuunin exam is completed with participations from allied nations to maintain good relations with those allied nations and to heighten the level of the ninja. This exam is the epitome of a war between the allied nations. In history, these allied nations were neighboring countries that have fought each other over and over. To avoid wasting military power, those countries decided to choose a place to fight. That is the beginning of the Chuunin Selection exam. The Hokage explains that the exam does choose who is of Chuunin level, but it is also a place where ninjas fight and carry their country’s dignity. In the Third Exam, feudal lords and famous people from various countries who may be potential clients are invited as guests to watch the battles. If there’s a significant difference in power, the strong country will be flooded with jobs. If a country is seen as weak, their jobs will decrease. The countries are also able to show how their village has grown and possess excellent military power to the adjacent countries so they can put foreign pressure on them. Kiba asks why they fight by risking their lives. The Hokage explains that a country’s power is the village’s power. A village’s power is the ninja’s power. And a ninja’s true power is only born in life or death battle. This Exam is a place to show off the ninja power of one’s country. Because they fight with their life, the Exam has meaning. That is the reason their predecessors have fought and dreamed of being in the Chuunin Exam. The custom of saving one’s life and fighting to maintain balance - that is the good relation in the world of ninja. This is a life or death battle for your dream and village’s dignity.
The Hokage then prepares to explain what’s involved with the Third Exam. Gekkou Hayate, the judge, asks permission to explain the rules.