what is the acceptable percentage for food grade ethanol?Is 95% ethanol plus 5% water consider as food grade ethanol?
The grade of ethanol does not depend on the water and ethanol percentages, but rather on what else is in there. If your mixture is truly 95-5 ethanol-water, with nothing else in it, than that would be safe to consume (accounting for the health hazards of consuming too much ethanol of course).

However, there might be traces of e.g. methanol or benzene in the ethanol, which are both highly toxic to humans and therefore cannot be present in food grade ethanol mixtures. According to this website the FCC grade and above are food grade, in particular due to some heavy metal specifications, so apparently there might also be trace heavy metals in the ethanol.