Gym (PE here) should not be a graded subject anyway.
What do they look for when they grade you in Australia? (lemme check my school's grading matrix)
Found it. Here's my translation of it:
Orientation (the ability to find different things by using a map. Orienting yourself in foreign environment)
Nature knowledge (you posses knowledge about nature and you can plan and lead lessons in the nature, e.g. going canoeing)
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Swimming (to be able to swim)
"Life saving" (the ability to perform CPR and take precautions to prevent unnecessary risks while swimming and bathing)
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Training (to be able to plan and perform your own physical exercises to prevent injuries. You can plan and perform a physical activity)
"Ergonomics" (to be able to use your knowledge of ergonomics in your daily life; how good ergonomics is good for you and how bad ergonomics can be damaging for you)
Diet and Health (you know the correlation between exercise, food, and health.)
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Dancing and movement (you can move your body and perform movements in a relation to music. You can move to a beat, etc)
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Ball-sports (to participate and play different ball-sports, using your ability to work in a team you play games)
Body control (to master your body and use it to perform various movements using your balance and body control)
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Leadership (you can use your social skills to affect your team-mates in a good way. You use your sense of "fair-play" to make it as enjoyable for everyone involved as possible.)
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A PE teacher looks at a student and looks through this list and grades him/her with it. I don't think there's anything wrong with this subject though it is a little broad...