Tough week.

I have a lot of kids failing my class. The majority of the reason is the test we took a few weeks ago. Here is everything I did to prepare the kids for the test:
1. We worked on the concepts for more than a week.
2. We took very careful notes, and in the notes was everything on the test.
3. The day before the test, we did a practice worksheet that was identical to the test except for different numbers. I was available the entire period to help. They were to study the worksheet to prepare for the test.
4. They were allowed to use their notes for the test.
5. They are allowed to retake the test, provided they come in after school, show me their notes, ask for help with whatever they don't understand, spend that night studying, and come in whenever they feel ready to retake.
In spite of all this, more than half the kids failed. Very few have bothered to retake. The class averages hovered around 65 percent, which is what they averaged on their last benchmarks. This tells me my grades are accurate.
I have gone over and over this in my mind, and I just refuse to inflate their grades. I didn't curve the test, and I won't. Their grades are an accurate reflection of their knowledge of the subject matter, which is as it should be.
Since I have so many kids failing, the number of parents wanting to meet with me has gone way up. I had five last week. I have two already this coming week. One of which is with the kid that called me retarded yesterday. He is failing math miserably and is just a jerk.
One of the parents last week, for some idiotic reason, believed her kid when she said she does all her homework, and studied, and has no idea why she's failing math. Well, I told a very different story and had examples of the kid's work to prove everything I said. The kid slouches in her desk during class, paying little or no attention to what is happening. She doesn't do her homework. She turns in papers that have 1 or 2 problems, the ones we did together in class, and nothing else so she gets zeros. She didn't even use her notes on her test. When her mom asked her why, she just shrugged. Well, this poor mother just cried. It was AWFUL. I said to the kid, in a very stern voice, "Look at your mother. LOOK AT HER. Do you see what you are doing to her? Do you??" The end result was very good; the parents took away her cell phone, her priveleges, everything. (This particular child is part African-American and has her hair done in small braids, very long, very pretty, and she is extremely vain about her hair.) They told her that if she doesn't fix herself, then when it's time to get her hair done, they just aren't going to do it. But the news isn't good. The kid was supposed to give me an apology letter, and talk to me after class on Friday, and she didn't do it. The parents told me specifically that if this kid didn't do that, would I please email and let them know. So, she isn't doing what she is supposed to do to fix herself. I only hope the parents follow through with what they told her.
Back to the failing grades. I have another student who transferred from another district in Tucson and his grade in math was a C. He can't do fractions, decimals or integers. He is one of the nicest kids I have ever taught, but he has no skills. How did he have a C? Because other teachers are inflating the grades. I just won't do it. My conscience will not allow it. But I know that with this many kids failing, there is a good chance the administration will come down on me. It hurts the school's reputation.
What to do? We have another test coming up on area and perimeter. I fear the results.