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Help - urgently need to clean up pixel trace image

I am helping a friend decorate their graduation cap with their logo this afternoon and I can't remember how to get a clean image from pixel trace. I am simplifying the arches to be just the center (removed outline) but can't seem to get a smooth import. 

I have attached the png I'm working with and my MTC file. Any help would be much appreciated. I have not fired up my Zing in a while and have forgotten a few things.

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