Levi, who told you Michigan counts PE in its GPA calculation? From all the literature I have seen, only academic courses (Mathematics, Science, English, Social Science, Humanities and Languages) are counted. PE is an elective and therefore is not counted.
According to the old policy (I do not have the new policy), “the University’s policy was to remove courses that did not fall into the major academic categories and recalculate each applicant’s GPA, though all classes were still factored in as part of the student’s coursework.”
PE, along other electives, were not included in the calculated GPA.