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Is there any difference between the phrases in the following context.

I couldn't pass the exam. That's what it is.

I couldn't pass the exam. That's it.

What I am trying to say that I didn't pass exam and that is a fact. Nothing can be changed about it.

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Either phrase will work and generally get your meaning across. There is not any real difference in the meaning.

That said, I think maybe the phrase you are looking for is "it is what it is".

I couldn't pass the exam. It is what it is.

That is a colloquial way of relating that "nothing can be changed about it" (whatever it is). You can use the phrase as an informal way of conveying acceptance about some unfortunate thing that has happened.

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