In my university, "Distinction", "Merit", and "Pass" are the three grades you can get for an Masters degree.
A 2:1 would refer to an undergraduate degree. Again, in my university, it went like this:
1st (equivalent to a mark of 70% or above)
2:1 (between 60% and 69%)
2:2 (50%-59%)
3rd (40%-49%)
Under that was a fail. So by that system, a good 2:1 would be in the upper range of 60-69%.