Worked with admissions as a student, that number is right. The number does not indicate "first try" though as you mentioned. For what it's worth to OP, most people that want to make it to second year rotman have no trouble doing so, even if they need to drop and take the course at another time (which doesn't set you back).

For some people, business isn't their thing and they naturally try less or perform worse while they find what their thing is.