Обобщете списъка в низ, разделен със запетая

Използвайте:

declare @t table(Number int, Grade varchar)

insert @t values(1, 'a'), (1, 'c'), (2, 'a'), (2, 'b'), (2, 'c'),
(3, 'b'), (3, 'a')

select t1.Number
    , stuff((
        select ',' + Grade
        from @t t2
        where t2.Number = t1.Number
        for xml path(''), type
    ).value('.', 'varchar(max)'), 1, 1, '') [values]
from @t t1
group by t1.Number