The military is taking a chance on every HPSP selectee - betting that you will survive the rigors of dental school, a course which not everyone finishes. As such, you want your grades to be as good as you can attain.
My grades are mediocre (3.4) and I have been accepted. Although my DAT was solid (22).
To be honest I have seen a buddy of mine enter the Air Force HPSP with mediocre grades as well (also around 3.4), despite the Air Force program being smaller (and therefore more competitive).
I wouldn't say your grades can be terrible, but they don't have to be great.
You are being compared to your peers. The scholarship fills up every year. Thus if your grades are low when compared to others applying you will probably get passed over unless other aspects of your packet make up for it.
There is not set GPA to give you - each board is seperate and does not have set criteria.