Light sentence for 200 seniors who cheated on finals

I see two problems with this: (1) They are apparently not attempting to discipline the students who cheated. (2) They are requiring those who did NOT cheat to re-take the test.

And the biggest problem (but which PERHAPS they are planning to address) is this: (3) If 1/3 of the student body cheated, then the school system itself has a problem.