Grade is a number from 0 to 5, which you provide when scoring your performance in recalling an item in learning. If you have an excellent recall of the item, you will score your review at 5 (grade 5 is called Bright by default). If you perform dismally,you will score 0 (called Null by default). Note that the term first grade refers to the grade issued at first repetition (i.e. Repetitions=2), not at memorizing (i.e. Repetitions=1). The first issued grade does not affect the learning process except for determining which items enter the final drill.
see also: Glossary