My English exercise book has a paragraph talking about friendship like this:
Meeting old school friends again can be a strange experience. Some have changed so much that you can hardly recognise: they speak with a different accent , are interested in different things and all you can do is make small talk and hope they'll go soon. Others, though you might have been out of touch with them for years, are just the same as they always were - it's as if you last saw them yesterday
Before you know it, you are exchanging words about your families and friends, and setting out the pieces for another game of chess. A few change for the better. There's one person that I get on with very well now, thought we weren’t on speaking terms for our last two years at school. One day, we met at a party and made it up and got engaged the same evening.
Source: Language In Use
The meaning of "make it up", as I look up in the Longman dictionary, is "to become friendly with someone again after you have had an argument". However, that meaning does not seem to fit in the last sentence of the second paragraph. Am I wrong and could you suggest its correct meaning in this context?