What would you all do?

I was speaking with a few teachers and reflecting upon some of the morality/ethical issues that Strike and Soltis present. After the discussion, it seems like it is a lot easier to sit in a room with peers and debate on a hypothetical situation than having them in the classroom. The case I want to discuss is the teacher passing/failing the basketball player. In phrasing it, I forgot to mention it was a college student, and all of the sudden I had rapid responses of anger, laughter, approval and disapproval. One of the teachers mentioned that they have had a student in the elementary class of the past. The student was a B/C student, but the teacher noticed that when the student received a C, they were absent the next day, and when the student came back there were visible bruises on the students body. Ergo, C=getting a beating. What to do? The student understood the work in class but when applying on paper, the grade wasn't so good. Would you bump up the student to a B because they do understand what is going on and honestly you are nervous for the student? Or would you continue to give the occasional C and know that you wouldn't see the student for the next couple of days if you did?
Once I stated the hypothetical case of the player many teachers did say they would try to sit them down, end of the semester and all, to try and work something out with them. Though none of these teachers are college professors they have been teaching, collectively for about 30 years. When I first read the passage, my gut instinct was to pass the kid and "pretend" I didn't realize it was plagaraized. After speaking with friends, my mind change to failing the kid because he's an adult and should know better. After hearing the class, my mind was even more confused. I guess in art it will be really easy to see if something is copied because most of the work time is allotted in class, but for the rest of you, good luck... :)