The terminal will change the password but better that than shutting you out entirely. If you're having trouble, remember that after three unsuccessful attempts you can still back out to prevent the terminal from locking down on the fourth guess. After the fourth guess however, if you haven't selected the correct answer the terminal will lock down preventing your access. Choose words that have similar structure and see if your total goes up or down.
Much like the old game Mastermind, when you guess a word you'll be told how many letters are correct in your guess, leaving it to you to figure out from subsequent guesses which letters were in the right positions. The harder the lock, the more letters the word is. A number of words will be down on the screen among the background of ASCII gibberish.
Bear in mind that some terminals require a minimum score in Science to even attempt.
Use your Science skill to bypass security on 25 terminals.