Advice on a Transfer/Gap year

Hello. I am a first year freshman at a liberal arts school in DC. Remote learning + a hurricane that devastated my area and left me without internet for almost a month has led me to withdraw from the university. I will not be attending a university for spring 2021, and will be applying to a local state school for the Fall 2021 semester. My current university has offered to mark all of my classes as “W” for withdrawn rather than leave my failing grades. Would this be a better option in regards to my acceptance chances at the other school? Should I just leave the grades how they are (terrible.)

Any help/advice is appreciated. Thank you.

You will be better off with all grades Withdrawn than any bad grades.

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