“Direct admit” means you’re in regardless of how badly you do, as long as you don’t fail out.
Smeal is “Pre Major”: you’re in as long as you pass (or waive through AP) Economics, Calculus, Statistics, English.. AND have a 3.2 by your 3rd or 4th semester. All students who meet the criteria graduate from Smeal.
Competitive admissions are a competition for places - it’s not enough to pass some courses and get a minimum GPA, students can be ranked based on various criteria (that may include rank in class based on some or all classes, clubs that require interviews to even participate, admission interviews, etc.) Only a percentage, sometimes as low as half of those with all the right courses and activities, get in.