I won't get into your assumptions since others have addressed the difference between a learning environment and a work environment. That said, you are dealing with interns (not well) who are.....interns. They are there to learn since they haven't had a job like this before. You are there to guide them, teach them and help them experience your work environment. Of course they have hugely varying abilities, of course some wont be able to complete an assignment correctly -- this is all to be expected since they are interns. You may have to first manage your own expectations.