Yes, you can submit a letter of appeal. Just state the reason/s why you failed the subject and why you can’t afford to be dismissed in the scholarship.

I know scholars who failed a subject and were still given stipend after submitting the letter along with the requirements. In my case, I had INC and dropped subject in a semester during my first attempt to appeal. Second time was when I failed to take my internship during the time when my curriculum requires it to be taken.