You can only conditionally format a cell based on its value (or its value relative to another cell), not the value of another cell. It might be done with code, but I'll leave that to the experts.
So you cannot conditionally format the school name based on the grades served. However, you can conditionally format the school name as you say and then the grades served next to it. For those exceptions to your definition will have green names and blue grades served.
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