I think that outfit should be fine...people tend to dress up a little, a slight step up from neat casual if that makes sense?. Is it in the evening?
I reckon getting him a little gift is really nice, a little more thoughtful than just paying for his dinner.
I never went to my graduation so can't answer the dress question (DD was 6 weeks old and I lived in a different State to the ceremony). But in terms of gifts, could you get something related to the degree? When I graduated, I got a fob (nurses watch) with an inscription and a new stethoscope. A friend who did a business degree got a really nice pen with an inscription and a REALLY nice breifcase. Another friend got a wrist watch with an inscription.
Sounds like the right thing to wear. Unless you are wearing a ballgown, I don't think you can be too dressed up. Personally I would just wear the same outfit to dinner as well, rather then changing into jeans.
As for a present; a nice graduation photo frame or album, A gradutaion certificate holder, an engraved pen, a flask, anything keepsake.
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