The puzzle answers were as follows:
Girls: Be true to your school.
Boys: Honor thy principal.
Zack: Guys, plan A did not go so well. It's on to plan B.
Slater: What's that?
Zack: Unconditional surrender.
The Girls: We bad! We knew it! You cheated! You blew it!
The Guys: We're bad, we know it. We're bad, we've shown it!
It doesn't make much sense that Slater would be intimidated by the idea of cooking being the deciding match to see who would get the money, since it was established in the Season 1 episode 'Pinned to the Mat' that he had a natural flair for baking.