If your ignition timing is set at 5 degrees BTDC, then that's way out of spec. Buy or borrow a timing light and verify it. Setting ignition timing is pretty simple, so if that's the only thing keeping you from passing then I'd get on it ASAP. If you have a basic timing light, it'll hook up to 12v power, ground, and your #1 spark plug wire. You'll then want to adjust your distributer so that the red mark on your crank pulley lines up with the timing mark on your lower timing cover. To do this, loosen the 12mm distributer bolts so that you can rotate it, then move it back and forth while shining the timing light down toward the crank pulley and timing mark. The red mark on the pulley is spec, which is 12 degrees BTDC in your case, and there are 2 brown marks on either side of it which are +/- degrees. There's also a white mark by itself which is TDC. When you get the red mark lined up as best you can(sometimes it'll jump around a little, so get it as close as possible), carefully tighten the 12mm distributer bolts and verify that the timing hasn't changed.
You can find a good illustrated guide here:
Just keep in mind that the timing spec mentioned refers to a B18C.