Which of these is correct with respect to a product developed or a service

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Question: Which of these is correct with respect to a product developed or a service performed?

Options are:

a. Bad quality is acceptable, but bad grade is not.
b. Bad grade is acceptable, but bad quality is not.
c. Neither bad grade nor quality is acceptable.
d. Grade and quality is the same thing.

Correct answer is:

b. Bad grade is acceptable, but bad quality is not.