If the question asks for an event in a specific place , like your school could you lead the story to another place e.g a concert? Would you lose marks?
I don't know about losing marks for it but I would only lead it to another place if you are completely stuck for something to write.
I would suggest that if they talk about a school, the setting should stay as the school. I am not sure, but you may lose marks. My advise would be to talk about the place asked in the question and use as much vocab as you know about that place to get higher marks and you will do grand :)
You could write about a concert that took place in your shcool