I would like to suggest the following.
Perhaps the person taking the test misunderstood what the examiner had said.
If he did not misunderstand him and if he knew where he was etc. why did he not tell his examiner that this would bust airspace?
Perhaps his situational awareness was being tested as he wanted to make sure the candidate knew where he was.
Also please bear in mind, it rarely is just one item a person fails on. It's always a multitude of things which aren't satisfactory.
I hope that whoever took the test also took notes on what exactly he/she did wrong.
Normally there is a form you get with the description of the failed section.