A 2.8 kg male neonate is born at 38 weeks gestation to a 28-year-old primigravida after a prolonged labour complicated by meconium-stained amniotic fluid. At 1 minute of life, the baby is noted to be pale with a heart rate of 68 bpm, no response to stimulation, flaccid tone, and absent respiratory effort. At 5 minutes, after initiation of positive pressure ventilation with 100% oxygen and chest compressions, the heart rate is now 110 bpm, the baby has weak cry, minimal flexion, and is still acrocyanotic. What is the 5-minute APGAR score, and what is the prognostic significance?