my internal modern mark was 98 and it was scaled to 95 in my HSC results, which massively brought my mark down, but I think that it happened to a LOT of people this year. especially in modern and ext 2 (where my internal mark was scaled down too)...
Internal marks are aligned to match the range gained by the cohort in the exam.
If your school sent in 98 as the highest mark from the school and the highest exam mark was 95 then of course the 98 will come down to 95 - nothing fishy there at all - simply because that is the process. The 98 could have been because of easy assessment tasks, easy marking or a range of things but the only task done in common is the exam so assessment marks are aligned to the exam marks to be fair to everyone in the state.