This game was part of the ALS tournament hosted by my teacher. How could I have avodid this? I looked at it but I cant see how. Help Please! 

If you played e4 instead of e3 on your first move, that'd have been a start.

 

Also, playing for Scholar's Mate isn't great against someone who knows how it works. 

Yeah I would highly recommend the e4 all the way out in front, otherwise you are always going to get cramped by a good player, and it happened as you can see.

Ok. Thanks for the help.

 

agreed, e4 is much better and easier to play.  Bc4 as you found out, allows ...d4 gaining time, and a classical pawn centre.  Bb5 allows it to be kicked away again.  6.h3 was your only try, but it's not pretty.

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generally speaking, e3 is a solid move if you are trying to end up in a draw.  Instead of bringing out your bishop early, you could have played either d4 or c4.

if c4 play could have gone something like this

1. e3 e5 2. c4 Nf6 3. Nc3 Bb4 4. Nd5   with slight advantage for white.  but always keep in mind the nf3 bg4 pin

White has the 1st move advantage, so why be so passive with a move like e3?

6. h3 was the latest you could've saved your knight, I think.

e4 instead of e3