This isn't an argument of school syllabi or binding contracts, nay. This is an argument of right and wrong, and of education ethics. In my opinion all those who cheated should be failed. People broke the rules, and there needs to be consequences. In a capstone course such as this, you are well into your transition out of college. The students have been given ample opportunity to act ethically and prove themselves in their journey through academics. If people cannot act ethically NOW (while in school), when will they begin to uphold integrity? They must be taught a lesson.