Is pass/failing one class bad?

Hi,

I have a scholarship which requires me to keep my GPA above 3.0 to keep the scholarship. My GPA is currently 3.11, and to keep it above 3, I decided to pass/fail one class, so it will not affect my grade. I will, of course, pass the class, but I was likely to get a C+, which could have put it under 3. Is doing that bad? again, I will get a pass. I just feel terrible about it, and idk why.

Update:

Edit: I am currently a first semester junior. I don't know if that affects anything.

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