; and (ii) with respect to participants who are at least 16 years old and no older than 24 years old, the expected levels of performance for each of the indicators of performance under section 116(b)(2)(A)(ii) for the activities carried out under the project under this section, which shall meet the requirements of subparagraph (B). (B) 5th year Each of the expected levels of performance established pursuant to subparagraph (A) for each of the indicators of performance for the 5th year of the demonstration period shall be higher than— (i) the highest level of performance for the corresponding indicator of performance for the programs described in subparagraph (A) of the definition of the term core program provisions under section 3 for the most recent program year for such State that ended prior to the beginning of the first year of the demonstration period; or (ii) an alternate baseline level of performance that is agreed upon between the State and the Secretary— (I) prior to the Secretary’s approval of the application submitted under subsection (d); and (II) after the Secretary takes into account— (aa) the goals the State intends to achieve through the demonstration project