MAX: Look at the large red circles around various parts of your paper as friendly reminders that to err is human. And that here at Chilton we try to beat that humanity right outta ya!
Max is referring to the quote “to err is human; to forgive, divine”. It comes from the 1711 poem An Essay on Criticism by Alexander Pope (1688-1744).
Max indicates humorously that there will be no forgiveness for errors at Chilton.