sort -n grades | sed -n '1s/.*/Lowest: &/p;$s/.*/Highest: &/p;'
Lowest: 2
Highest: 19
You need to sort -n if you want to sort by number. With sed, you may handle it in one pass.
Multiple Sed comamnds are concatenated by ;. 1s and $s mean the first and last line. & is the whole read expression/line. p prints the result. -n is -no printing in general.