The Awards levels are as follow:
In Book: The year's best creative work. In Book work features in the D&AD Annual.
Nomination: Work that rises above In Book standard and has the potential to win a Pencil.
Yellow Pencil Work that is outstanding, rather than merely brilliant, wins a Yellow Pencil.
Black Pencil The best of the best, the ultimate award, for work that is truly groundbreaking. Only a handful of Black Pencils are awarded each year.
To write yourself into the future of D&AD visit http://www.dandad.org/awards/professional/2012