Now I'm certainly no expert here, but it seems odd that a pass/fail course would be used in calculating your GPA? HD=7, D=6, C=5, P=4. So they have arrived at 5.25 by adding 7+6+4+4 and dividing by 4. But with the 4s you couldn't get any higher because it's a p/f course. They have dragged down your GPA, so that doesn't seem very fair. Is it you who has calculated it or the uni?
If nothing else, you know your "real" GPA based on the graded courses was 6.5!! xo
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