First of all, you rock hardcore for sticking it out so far! College in an engineering degree is tough, and often I think one finds themselves asking "Just how is this stuff useful? relevant?..." I'm not sure what subject you're failing, but I am sure that the problem is largely with the educational system, and how these exams are organized... the way they rely heavily on theory, and memorization, and very little on the practical. Now, the problem is we can't really change the educational system, so we have to survive it and overcome it, but I think that being aware of its flaws will make you look upon this situation a bit more optimistically.
One alternative to simply waiting one year is getting a job in a field you're interested in. Many Junior positions hire people who are still in school, and I think getting your toes in the water of the job world will help you find relevance in what you're studying in school. Even if it doesn't, I think it will help you put in balance the theory of school, with the practicalities of the job world. The one year of work experience will put you ahead of other applicants when you finish your Master's as well.
Best of luck to you, I hope you do well :)