Final answer:
The policy that allows a student to re-take a class for a better grade is called grade forgiveness or grade replacement, which is separate from social promotion and grade inflation.
Step-by-step explanation:
The policy that allows a student to re-take a class to try to get a higher grade is known as grade forgiveness or grade replacement. This practice is different from the options provided in the question, which refers to social promotion (the incorrect answer 'c'), a policy that enables a student to move to the next grade level without meeting the academic criteria. Grade forgiveness may be implemented by educational institutions to allow students a second chance to improve their understanding of a subject and their GPA, recognizing that not all students can fully grasp a course's material in a single term. However, discussions around grade-related policies often touch upon the issue of grade inflation, which is a separate concept where students receive higher grades than their performance merits, as noted in the sources provided. Grade inflation can cause a rise in the average grades given out by an educational institution, which may misrepresent students' actual abilities. While some argue that grade forgiveness can motivate students to re-engage with the material and enhance their skills, critics suggest it might contribute to grade inflation.