THe source has some missing diacritics, other tha that it is not so terrible , I'll edit the source and some editing in your translation would make it better efozdel
Yes, it means there is an exam tommorow but it does not mean the person(s) is/are going to fail, it is about wishing them success for the exam but the speaker pities the person(s) who is/are going to have it (it may have various reasons; maybe they have a hard teacher who likes to make them fail by asking difficult qustions or maybe the students did not study very well or the subject is too difficult etc. )