Murray scored on a 2-yard TD run to cut Tulsa's lead to 21-20. The extra point was blocked by Trent Martin, but Bortles' 28-yard scramble put the Golden Knights up 27-21 late in the third quarter.
UCF then had back-to-back three-and-outs before Watts tied it with his return.
"It's tough. We all want to win. We gave it our best and we came up short," Rae said. "They beat us on one extra play."