The physical education grading policy at South Lake High outlines that student grades are based on participation, effort, work habits, and citizenship. Students start each trimester with 100 points for an A and can lose points for issues like not following directions or safety rules. Letter grades are assigned based on total points earned. Citizenship and work habit grades are also given based on following rules and lack of effort, with deductions made for infractions. The document details the consequences students face for being late to class such as clean-up or detention.