Effect of Repeat courses on application

[ausmanj]

Hello everyone

Well my question isn't related to any current B-School application I am working one but might affect one later down the road. Currently I am doing MBA with majors in Banking & Finance from a top school in Pakistan. I plan to apply to ivy league in 2009/2010. My undergrad CGPA was 3.3 and my current CGPA in MBA is 3.65. I aced nearly every course in my MBA except for one titled "Financial Systems". I got a C+ in this particular subject (GPA 2.5). This was not due to rather horrid marking and checking criteria of the course instructor (He failed 50% of the class by the way). My school has now offered all the class to repeat the course (at no cost and with a different instructor). The catch is that this course would be listed as a 'repeat' in the transcript. My question is that

1. Would it affect my application when after a couple of years I apply to major school in the US and UK?
2. How do admission staff view students with 'repeat' course(s) ? Do they view it negatively?
3. Should I actually go ahead and repeat the course? The improvement in my CGPA would be from 3.65 to 3.70-3.75 ( considering I get A/A- in the course which I DEFINITELY WILL)