Is it better to drop a class in which you would get a C (or potentially D) in order to keep your GPA up or keep the class to show that you don’t give up?
How bad does it look on a transfer application if you have dropped a class?
This would be my first dropped class if that makes it any better.
Some questions to consider: Is the class in your major? Does it meet general-education requirements? Will you need to retake it and will this cost extra money? Will the dropped class appear as a W on your transcript, or will it not appear at all? (At my school, Ws from your freshman year are erased from your transcript.) You might also want to talk to your professor.
I think that withdrawing from a class is better than getting a C or a D, but I know a lot of people disagree.