Agreed, the reason for failing is important. For general surgery, honestly I think you'll be fine. There are a lot of people specializing in surgery now, and the average board score for general surgery is not that high. Last I heard was in the high 220s? Someone correct me if I am wrong. Regardless, I would definitely address it in your personal statement in a subtle, triumphant way. That way when you interview, you can reference that as a "learning experience" of sorts. You are in a tough spot, but I don't think it's the end of the world if you did well on surgery and have good LORs.
If it was for professionalism or some other preceptor-based report, you need to start thinking about prelims or transitional years, being completely and brutally honest.