What does it mean, exactly, to be "average excellent"?

But it states: ‘Limit 2 credits per quarter with a maximum of 8 activity units may be applied towards graduation.’

A limit of 8 applied to graduation. Does that mean you can take it for credit for multiple terms but only 8 activity units will be counted toward graduation?

When I was in school back in the stone age I had to take 2 PEs worth 1 credit and both counted toward graduation credits. I could take more PEs which counted as 1 credit on my transcript and for my semester total but did not count toward graduation credits.