Sentence:  A few of you have followed in the path of the perfect West Point graduate, Robert E. Lee, who never received a single <WSD>demerit</WSD> in four years. Some of you followed in the path of the imperfect graduate, Ulysses S. Grant, who had his fair share of <WSD>demerits</WSD>, and said the happiest day of his life was "the day I left West Point." (Laughter.) 
Meaning of the word marked with <WSD> tags:  A mark given for bad conduct to a person attending an educational institution or serving in the army.