I read the UK one as (2), but the Welsh one looks like (1). Clarification to follow.....
Welsh guidance:
An appeal can now be made on the grounds that there is evidence of internal assessment that has been judged by the school or college to be at a higher grade than the calculated grade awarded. Internal assessment evidence will need to meet specific criteria, which is being finalised and will be published shortly. If the appeal is successful, the learner’s grade will be revised to be the same as their internal assessment grade, but no higher than the Centre Assessment Grade submitted by the centre.