Teaching Values to my 5yo Boy

I have received my 5yo son's testpaper in his values subject today. He is in kindergarten level already. I was surprised that he didn't got a perfect score, since he got most of his subjects perfected. I was happy and proud for him. But as i scanned his wrong answers. I got a little confused as how to tell my son without making myself a lier?

I am a proud mother. My son is the most beautiful and caring person in the world, but he can be a brat at times, just normal at his young age. And its my duty to instill proper values to my little boy. I always tells him to be a good child, because God loves him. He got a perception that being a bad boy, God will not love him. In a child's mind, it's either you are being good or being bad.

This is the question on his testpaper.
Answer True or False. God loves only those who are good? His answer was TRUE. Which was marked wrong, of course. And everyone of his classmates was marked wrong too...

The work of a teacher is to teach proper values on her students. But i was not happy that teacher can used or twist the situation of my own teachings. How will i tell to a 5yo boy that being bad is loved by GOD? He aint 8yo. He's just 5yo. He doesn't know that God's Love is for everyone. He doesn't even know what love means. All he knows, he loves me coz im his mama. It's a step by step process to make him understand. And it's my duty to teach him whats right from wrong. And he asked me and said, "So mama, God will still loves me even if im being bad? But why is it you said i need to be a good boy when God doesn't mind if im doing bad?" With a worried and confused looks on his face. I tried to explain with him that God loves is for everyone, and he is ready to forgive those who are bad, as long as they repent. He's getting more confused.... as a mother, we need to guide our child and answer all their questions in an uncomplicated easy to understand ways.

What will you do in my situation? Will you talk to your childs teacher and explain how you feel? Do you have anything you wish to share about teaching values to our little kids, please do share.