A Failure's True Power (落ちこぼれの底力!, Ochikobore no Sokojikara!) is episode 62 of the original Naruto anime.
As the fight progresses, Naruto and Neji argue about the outcome of their match fate being predetermined. After that, Neji strikes down Naruto with several hits, and tells the examiner that he should call the match. After having all his chakra closed off, Naruto manages to summon the Nine-Tailed Demon Fox's chakra. Neji and Naruto then clash, creating a massive explosion in the arena. The two are then seen lying on the ground. Naruto, having dug a hole underground, surprises Neji with an uppercut from below, knocking him out. Genma then announces that Naruto is the winner of the match.
Near the end of the episode, Naruto says he failed the Graduation Exam three times because he couldn't use the Shadow Clone Technique when he actually couldn't use the Clone Technique. This is a dubbing error.
It is also shown in the latter part that a bird was flying into the daylight, with Neji Hyuga staring deeply at it. It wasn't depicted in the episode, but it may consider a symbolism about Naruto's words to him about destiny and freedom.