Contrary to what some prominent gasbags want us to believe, yes, indeed, failure is an option. Maybe what they mean to say is that admitting failure is not an option. If you can't admit a disaster that is unfolding right before your eyes, it seems to me that you just make it all so much worse (it may even be at least criminal and maybe even immoral). There is no virtue in stupidity.
One diplomatic (think weasel!) way out of this kind of thing is to declare failure a success and just move on, but even that seems to be beyond the pig-headed power mongers at the helm.
Failure is always an option. It happens every day, to all of us. It's okay. It may even be necessary. It's how we learn (sometimes painfully) what works, what doesn't. It's how we get experience and (admittedly, it may not be the most efficient way, but I think it's certainly effective) how we grow as human beings.
I guess it's a cliche, but yes I think failure helps build character. It's how we handle it, it's what we do after the pieces have fallen around our ears that defines who we are as human beings.