Correct. The sentence
"Neither of the students failed the examination."
Implies only two students.
For more than one, it would read.
"None of the students failed the examination"
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Tes yeux noirs
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Fri 8 May, 2015 02:10 pm
'Neither one of the ...', although not incorrect, would be seen as cumbersome by many native speakers, and in fact "neither student failed the examination" would be acceptable.
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Tes yeux noirs
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Sat 9 May, 2015 01:32 am
In fact, there would usually have to be a good reason for not saying "both students passed the examination"