You don't get 44 and 55 and whatever other percent grades on your transcript. In most cases you don't ever know what your percent grade is. If you get below 50, your grade is 0. If you get a 55, that's a 2. So, as 2Dream said, they both remain on your transcript but you only get 3 units for it (if it's a 3-unit course). So it's essentially averaging them together so it's the same as if you had only taken the course once and gotten a 1. You should familiarize yourself with the 12-point scale that McMaster uses - just google it to find the full conversion.
Also, just to add - if you took a course and got a 1 in it, and then took it again and got a 9, that would average out to a 5 in the course over 3 units, not 6 units, even though you passed both times (since, with the exception of a few topic-based courses, you cannot take the same course again to earn more units).
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