it passes every test accept the smart test
Do you mean "except the smart test"? The drive says it's failing. It's failing, RMA it.
"Self-Monitoring, Analysis, and Reporting Technology, or S.M.A.R.T. (sometimes written as SMART), is a monitoring system for computer hard disks to detect and report on various indicators of reliability, in the hope of anticipating failures.
When a failure is anticipated by S.M.A.R.T., the drive is typically replaced and returned to the manufacturer, who uses these dead drives to discover where faults lie and how to prevent them from reoccurring on the next generation of hard disk drives."