Question 1: Happy, because they would probably see themselves as successful and who is to say their happy outlook won't garner them success. Whilst success never guarantees happiness.
Question 2: Not cheat. Why: Failure can be character building and I prefer promoting honesty over dishonesty for integrity sake, I also think it makes a better world/society. Besides they could just as easily strive to be accepted to the prestigious University higher levels of education beyond their bachelors and unlike the cheating scenario be truly appreciative of their accomplishments. Perhaps this failure could force them to think outside of the box and create opportunities.
When my children (4 & 9) 'fail' and are frustrated they already know I am going to ask them why we have WD40 instead of WD39? Failure is part of life and unavoidable, better to learn from the experience then trying to live life avoiding failure at all costs. Additionally failure makes us appreciate forgivness of ourselves and others.
Happiness, oh geez like being a born JW didn't teach me a thing about the hamsterwheel of striving for success! I think success is only possible as a whole when a person is balanced.... and of course being balanced tends to cause happiness.
..... BTW this is reflective of my parents views (or at least those they heaped on me).... but I think my Dad would cheat and justify his actions because he is highly competitive in his personal life.....his values bestowed on me don't alway match his actions......