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How Much Do Grades Matter?

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There are two very difficult classes that I am considering for next semester.  They are both in my major but are typically reserved for seniors.  I am only a sophomore, but my Professor has given me permission to take them.  A senior in my fraternity, whom I really respect and think is super smart, took one of the classes as a junior and he got a C!  He loved the course and highly recommends it. But if he got a C, that means that I could get a C or worse!

Right now I have a 3.7 GPA.  I want to apply for a very competitive internship at either a consulting firm or an investment banking firm next year.  I'm afraid that if I do poorly in these classes, it will effect my GPA and ruin my chances of getting an internship.

Do you recommend that I take these difficult classes?  How much do my grades matter when applying for internships and full-time jobs? 

To read more about this student's career dilemma CLICK HERE!