I am a student in engineering from a not know university. In my third year, I did an exchange in a european university. In two courses I got an A and an A+, but in the other two I got an F. The reason for this is that I had asked the administration if I could audit the courses, and they agreed and said that they would change my status. Later, I found out that they did not do it because exchange students are not allowed to be registered as audits. As a result I missed deadlines and ended up failing the course. I also did not have the pre-reqs for the course, that was the reason why I asked to be an audit in the first place. The university did not want to change my grades, but they provided me a statement (pdf) that explains what happened.
The rest of my profile is solid (over 90% GPA), excellent LORs, research experience and what I consider to be a strong SOP. How is this going to affect my graduate application?