Listen man, shit happens, that's just part of life. I'm not going to sugar coat it, it's obviously not ideal and you already know it but there are people out there way worse than you. My mate got tuberculosis during VCE (if you ask around people still might remember) and he was obviously in hospital for awhile and had to repeat. Now doing bad in a subject is one thing, doing that and having an exotic disease that might kill you is another. The point here is people have bounced back from way worse.
If it's just English, it really is fixable. Again, it could be worse, you could be failing all your subjects. I know people who got ATARs of like 20 or 30, they obviously didn't do very well in any of their subjects, which is fine, academics isn't everyones thing, doesn't measure a person.
In the event you do fail, you will get no ATAR but it doesn't mean your other subjects are wiped blank, you can still continue to do those and get marks in those (as far as i know). All you need to do is go back next year and take English again. First of all, i strongly encourage you not to give up. Appeal your case as best you can, apply as much pressure as you can without damaging your case. Get your parents in to it, arrange a meeting for the principal either with you alone or with your parents. It's scary to stand up to authority like that man, everyone knows the feeling. It is a good idea though, arrange a meeting, argue your case, point out how it'll affect you personally. Point out how it might be a fatal blow to your education and you're considering dropping out over it (dont make it sound like a threat though).
If you do fail, you have a few options:
(1) Repeat English at school
(2) Do it at a TAFE/Adult education type place. I strongly encourage this option. It saves the discomfort of going back to school and its much more adult. A lot of people take a gap year and other things like that, taking an extra year to get to uni is nothing in the grand scheme of things.
Either way i encourage you to still continue your other subjects this year.
[PS: Holy shit man i went to CRC too, Brendan still the principal?]