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Scout can already read well beyond her grade level which frustrates Miss. Caroline. She also demonstrates that she can write. Scout then tries to explain why Walter Cunningham can't accept a lunch money loan. Miss. Caroline is just frustrated because she is so out of touch with the kids she is teaching.
Miss Caroline doesnt like how scout already learned how to read and write and scout complains that walter is a cunningham and that he cant accept a lunch money loan cuz hes a cunningham