I am an international grad student in ECE in USA, in the field of Wireless Communications, and I am on my second semester of my Master's program.
Last week I learned by advisor was unhappy about the grades I got last semester. More specifically, I took two courses and took B+ and A-. On the first course I thought I had scored A or more but I got a bad score on the final; something I wasn't expecting. On the second one, I had a panic attack during the final and I couldn't think calmly, so I got a score of 60, when having 90+ on midterms. I told this to my advisor, and also said that being away from home also made it harder for me psychologically, the reply was that many people have problems on the first semester, but also that if I don't correct my grades this semester it may mean that I am not suitable for doing research in this field, and that I would need to search for another research group, or leave with a master's and work at industry.
Note that my grades are over the department minimum for PhD entry. So it's my advisor's idea, not a department requirement.
So what should I do? Of course I will try my best to be improve this semester but I think I need to have a plan B in case my grades don't improve too much. What should I do to persuade my advisor?