Is this sentence grammatically correct?

You're probably asking because you're concerned about pronoun ambiguity. The GMAT is a little weird about ambiguous pronouns. If a Sentence Correction problem gives you a split (a difference among the answer choices) where in some cases you use a pronoun, and in other cases you replace it with a noun, it's probably best to replace it with the noun. (This is because this issue usually comes up when there's a pronoun that could be 'ambiguous', that is, it could refer to more than one different antecedent). However, in some problems, there are pronouns that could technically be ambiguous in the right answer. That means you can't eliminate an answer on SC just because there's a possibly ambiguous pronoun. You have to look at the other answer choices and see whether they fix the issue by replacing the pronoun with a noun. If they do, pick one of them. If they don't, then you're stuck with the pronoun and you should worry about other issues in the sentence instead.