Well, to be honest, all plywood should conform to some sort of grade statards by the HPVA Association (Hardwood, Plywood and Veneer) which is marked by the American National Standards Institue and International Hardwood Association. In this regard Luan Wood is a high ranking material as it is a panel composed of layers (piles) of veneer in combination with other materials and joined with a very resilent adhesive bond.
A and B Grades Plywood are the highest quality plywood. Also they are the most expensive types of softwood plywood. They are very good for work around the house or for shop projects like workbench plans. All large knots are replaced with football-shaped patches, which can be sanded and finished with the rest of the panel. Also, any gaps or voids along the edges of the panel are usually filled and smoothed off with wood putty. Using A and B grade plywood ensures a sold finish, and thier is a limited about of any repair work that you will need to do, to remove patches and whatnot to smooth the surface. 
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