。
She graduated with honors.
Literal
She [topic-は] excellent grades [with-で] graduated.
優秀な成績で卒業した — 優秀な成績 (ゆうしゅうなせいせき, 'excellent grades/results') uses で to mark the manner of graduation. 卒業する (そつぎょうする, 'to graduate') is a standard academic suru-verb.