I seriously doubt whether there was actual sex involved. I lived in various hispanic communities (including Mexico City and Spanish Harlem) and what among many would pass for typical childhood "hanky-panky" could very easily be misinterpreted as an affront to a daughter's virginity in that environment - especially forty years ago.
All the mother says, remember, is "your son and my daughter are doing bad things".
That said, the girl was obviously a little older than Junior - when we see her waving out the window at the end, she's got budding breasts ... so although they're too young for sex as of film time, they may be leaping toward it in the near future.
And ... just to clarify, Popi hits Junior for: a) breaking the mailbox, b) hiding the letter from the school about his absences, c) drinking alcohol with some older kids, and, almost an afterthought, d) playing around with Silvia (which may have been done under the influence).
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