Report card woes

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Well, it's end of term and that means report cards are here again. My younger daughter came home with an amazing report card and an overall average of 89% for the term. Yet, she's disappointed. Why? I wondered too! Then, I saw her grades. She had over 90% in a strong majority of her individual subjects but the kicker? A 71% in Phys Ed. This managed to pull down her whole term average. My older daughter is a lot more physically able than her sister. The younger is good at certain activities but not so coordinated at others - and they are tested on everything. She tries her hardest but there are just some things she can't do. She gets full marks from her teacher for participation and his written comment said she is "a very positive contribution to the class." But she still feels let down. I've told her how proud I am of her. She's in the first year of what is called a "Challenge Program" at her school, for academically motivated students (her sister went through this same program a few years ago... it runs from Grade 7 to Grade 9). She excels in academics in a program where students must obtain at least 75% in the core subjects (Math, English, French, etc.) JUST to stay. She's done that (and more) yet I'm still trying to bolster her spirits due to a Phys Ed grade! I know how important it is to get our kids physically active. There is far too much of an obesity problem among today's youth and they need to have as much Phys Ed as their school system can afford. I'm wondering if you all have thoughts or opinions, though, as to whether Phys Ed should be graded exactly the same as the other academic subjects. I mean, sometimes there just ISN'T a level playing field if a child isn't adept at gymnastics (she's not!) or can't hit a softball (this she CAN do LOL). I'll be grateful for any and all perspectives :)