What level of experience do you have?
To be honest, I think they'd be mad to lie when they say that you were comfortably above standard. If you had failed, it would be a whole lot cleaner and neater to tell you that, espeically as they raise the possibility of re-applying, which would mean another messy rejection if they were not telling the truth about your application.
In your profile, it says you're a teacher, and they do talk about it being a basic qualification, which makes me wonder whether you have a lot of experience and they felt that might affect the group dynamics.
- For Teachers