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Oh and how does papering work?
What's the grade levels.

You asked:

What's the grade levels.

The game has 8 levels of show classes, which increase in difficulty of what the horse is expected to be able to do.
Level 1: inhand, the horse has not yet been ridden.
Level 2: Green under saddle: the horse has been broken to ride, but not yet schooled in jumping.
Level 3: Green over fences: the horse had begun its jumping career.
Level 4: Training: the horse is being schooled over different types and heights of jumps.
Level 5: C level: more complex courses with good sized jumps
Level 6: B level: still more complex courses with higher jumps and trickier combinations
Level 7: 2 level: once again and increase in the complexity of the course
Level 8: Grand Prix: the toughest courses for the best jumpers

In each level there are 4 grades, Local, Regional, National, and World. Local shows would draw horses from a relatively small area. Regional shows might include horses from several neighboring states, the best of those that had shown at the local level. National shows attract the best horses in a country. World shows may have competitors from around the globe, the best horses at that level of showing.

I'm not into showing myself, since I don't own any horses, but this is what I think the world of show jumping and hunter classes is like based on watching some shows on TV and thinking about what might be be the difference in the various levels and grades. Someone with experience in this world can probably give you a better answer.

In the game, as our horses continue to train, their skills are imagined to be increasing so that they can compete in more and more complex shows, but we don't, of course, get to actually see what these imaginary shows are like.