Your teacher warned you time and again to pay attention. You didn't listen to her and wanted to have fun and play on your phone. Now you find yourself in the principal's office about to be suspended and have this incident put on your permanent record.
You are good kids and the principal doesn't want to suspend you if possible. He has made a deal, if you can learn his lesson he is trying to teach you and prove it, he will not suspend you and you can go back to class.
Do you have what it takes to work with your friends to avoid being suspended? Good Luck.