; and (ii) determine the average percentage over the 3 succeeding academic years following the hold harmless academic year described in clause (i) of bachelor's degree-seeking students who enrolled at the institution for the first-time in a full-time capacity for each of such 3 succeeding academic years who received a Federal Pell Grant for each of such 3 succeeding academic years. (D) Failure to improve (i) In general Except as provided in clause (ii), if an institution of higher education has an average percentage determined under subparagraph (C)(ii) that is less than the threshold mark described in paragraph (2)(B)(ii) for the academic year for which the institution was included in the report under subparagraph (A)(ii) that triggered such determination, the Secretary shall impose on such institution a penalty described in subparagraph (E). (ii) Delay of penalty (I) In general The Secretary may delay imposing a penalty described in subparagraph (E) with respect to an institution that has an average percentage determined under subparagraph (C)(ii) that is less than the threshold mark described in paragraph (2)(B)(ii) for the academic year for which the institution was included in the report under subparagraph (A)(ii) that triggered such determination, but whose percentage determined for the most recent academic year is at or above such threshold mark. (II) Period of delay The Secretary may delay imposing a penalty under subclause (I) for a period of not more than 2 years. (III) New 3-year average With respect to an institution for which the Secretary delays imposing a penalty under this clause for a period of not more than 2 years, the Secretary, at the end of such delay period, shall determine the average percentage over the 3 preceding years of bachelor's degree-seeking students who enrolled at the institution for the first-time in a full-time capacity for each of such 3 preceding academic years and who received a Federal Pell Grant for each of such 3 preceding academic years. If the institution has an