Most definitely possessed

How could they not be scared? Even if they were grown men if someone was to tell them that there was a spirit that ate the brains of humans and that too after opening the head through sheer force, it was obvious for them to be scared. 

A chill spread to their bones and finally curled itself around their hearts. Even Wu Jin who expected something like this to happen couldn't help but shiver, his expression changed to a terrifying one. 

Song Yan however did not stop there. She continued speaking, "In case these children who were taken out by their parents were one of the top-scoring kids, I'm afraid they wouldn't be alive for long." The reason why Song Yan was certain about this was because she knew that a soul like this wouldn't stop until it was exorcised.