The labs on the course are Pass / Fail. You must complete all of the lab questions in order to qualify to Pass the course.
The project is graded A-F. You must complete at least a small project to qualify to Pass the course. For more details about the project grading criteria, see here.
The overall course grade is based especially on the project grade. A pass in the labs and at least a grade 'E' in the project are required to pass the course.