Final answer:
The sentence in question demonstrates the subjunctive mood, which is used for hypothetical situations or wishes.
Step-by-step explanation:
The grammatical mood demonstrated in the sentence 'I am hopeful that we will graduate before the spring, but with the way classes are going right now, it looks like this may merely be a dream' is the subjunctive mood (D). The sentence expresses a wish or a hypothetical situation, which is characteristic of the subjunctive mood.
It's important to note that verbs have three moods: indicative, imperative, and subjunctive. The indicative mood is used to state facts or ask questions, the imperative mood is used for instructions or commands, and the subjunctive mood is used to express wishes, suggestions, or hypothetical situations.