So when it comes to your HSC the internal marks that you get are actually marks from the external exams just moderated and all that? Your actual assessment mark itself does not matter?
The mark matters as it sets the gaps between you and the students in your cohort and that gap matters.
If someone came 3rd and got 92% on his external, the highest in his class, the 3rd highest external (84% for example) would become his internal and his external will become the person ranked 1's internal?
NO - it isn't a simple process of matching the internals to the externals. Say for instance that your 3rd ranked student was one mark behind 2nd and 3 marks behind 1st in school assessments to have them then end up with a moderated assessment mark of 8 marks difference would be unfair. As far as possible they kepp the gaps similar to those that the school sent in and as the school's marks usually are of a larger range than the aligned exam marks it is normal for the internal marks to be closer than those sent in by the school.
Also what do you mean by "and for everyone else, they look at the relative mark difference between the ranks." like could i get a rough example or something?
If a school sends in marks like 98, 96, 94, 89 and 88 and then in the exam the students get 99,97,96, 94, and 88 then the range for the internal marks will be from 99 - 88 just as the exam's range was. Now if you look at the 5th ranked student there is a 5 mark difference between 3rd and 4th and then one mark back to fifth. That gap also needs to be maintained in the assessment marks so the assessment marks would look more like 99, 97, 95, 90, and 88. So 4th would get a final mark of (94 (exam) + 90 (assessment))/2=92 (HSC).
Sorry just having that freak out moment and really wanted some straight answers to clarify all the rumors
Stop worrying - study hard, do the absolute best you can, encourage your cohort to do the best they can and the rest will take care of itself.