The pair scored 54 points out of 60, with two tens for their first dance.
The ballet classic will perform two shows for the holiday season.
The sixth annual fim festival will run for a week.
Penn State was outplayed in the final regular season game and is unlikely to qualify for the Big Ten Tournament.
Arnold-Pommel received their first 10 of the season but lost the dance-off to fall to the bottom three.
Nedoroscik and Arnold dropped to sixth place after receiving all eights in the individual and group dance.