This is the "official" name of the school subject, but we just call it Idrott.
Idrott also means sports, athletics and games (from what I understood).
Here’s a thread about the distinction between idrott and sport: https://www.duolingo.com/comment/7095727
Sports and athletics, yes. Games, not so much. ^^
At least in the UK, “games” is a very traditional name for the school subject of sports — so it does seem appropriate here..
I'm really thankful that you accepted P.E.
Sounds like the name of a magazine
Why not Fitness? We often say Health and Fitness as a pair.