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From what I remember, my high school grades were based on the following:

E 0 - 49%
D 50 - 59%
C 60 - 69%
B 70 - 79%
A 80 - 100%

So a D grade was a passing grade.

Like others have posted, it's not that 7's are bad, it's just that there are so may 8's or 9's that make playing the 7's not worthwhile.