"I would prefer even to fail with honor than win by cheating." by Sophocles

This means that cheating and winning by it is worse than losing. So what it means by honor is honesty. Honesty because you didn't dirty your name by cheating your ways. So the quote is saying that they rather lose but be honest than cheat their way out. An example is like if you are doing a race, and cheat and dirty the teams name. But if you lose with honesty and pride that you at least tried is a way better thing to do. S it is better to keep your teams name clean and with honor. On the other hand, if you lose but with honesty, you shouldn't be ashamed for being truthful.