Per the AFROTC regs,
Any class retakes or F's will be a conditional event. There's also that 2.5 TGPA & CGPA (Term GPA & Cumulative GPA) requirement for scholarship cadets. Falling below either (CGPA & TGPA) also warrants a conditional event.
However, due to his failing grades, that should only count as one CE,
not two. If this is his first CE, his scholarship shouldn't be suspended. If this is his 2nd, then it may be suspended. Third = terminated (+ investigation for dis-enrollment).
Notes from the regulations copied and pasted below:
Note 1. If a cadet receives more than one failing grade (to include “I” incomplete) in the given term OR the TGPA drops below 2.5 as a result of failing grades in that term, only count as one CE. This rule does not apply to low TGPA and failing to maintain full-time student status, which would result in two CEs.