It is an annual test where you will be required to track an NDB within +/- 5 deg. If you can't you fail.
Not so black and white as you might suggest.
4.1.3
Throughout the flight the aeroplane should be flown as accurately as possible. The limits for
operation are given as guidance to applicants but do not necessarily indicate that a 'failure' will
result if any boundary is exceeded.
Same Document as you cited
"Rules are for the obedience of fools and the guidance of wise men"
Well I never, I do believe that is attributed to none other than Douglas Bader.
Cheers