The context of the following conversation is Casey and Jan got caught cheating on a test so for punishment they had to pick up the rubbish in the school yard and each day they performed their duty.:
Casey says This is just great..
The friend responds How embarrassing, picking up trash..
Casey responds I guess we sort of deserve it..
The friend responds I don't know.  What does picking up trash have to do with cheating on a test?  They're just trying to shame us as a warning to other students..
Casey responds Well, we could have been kicked out of school..
The friend responds Yes, I suppose..