The best word to fill in the blank is "incorrigible." The sentence would read: "Alternative School is filled with some of the more incorrigible students who couldn't find their way in regular school. They are the kids who refuse to behave or do any work."
"Incorrigible" means not able to be corrected, reformed, or improved, which fits the context of students who have trouble conforming in a traditional school environment.
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