Use:
declare @t table(Number int, Grade varchar)
insert @t values(1, 'a'), (1, 'c'), (2, 'a'), (2, 'b'), (2, 'c'),
(3, 'b'), (3, 'a')
select t1.Number
, stuff((
select ',' + Grade
from @t t2
where t2.Number = t1.Number
for xml path(''), type
).value('.', 'varchar(max)'), 1, 1, '') [values]
from @t t1
group by t1.Number
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