If your instance attribute was set up properly, you should get a key value attribute when editing the registration instance attributes. You may need to set up a page to edit instance attributes if you don't have one already. For us, we have a tab set up on the instance page that links to a page with an entity attribute values block.
From this block you can select a grade and then input the capacity for that grade. If you put a grade in more than once, the capacities will be added together.