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isn't it possible for me to explain that when i apply to grad school and it'll be okay?
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The only way it would be okay is if you lied about it and wasn't caught, which is not advisable. You can't explain to a grad program that you were getting a C and decided to purposely fail the class so that you could retake it. They would probably think you're crazy.
Try to get a great grade on the final exam.
Also, make sure you understand the material before you start taking Calc II because it is a vicious circle if you don't.