Taylor Swift was nominated for the biggest award of the night at the 2014 Grammy Awards, and although she missed out on taking home a trophy, she left with her grace.

The anticipation was high as the nominees for Album of the Year were announced. Along with Swift's 2012 album 'Red,' the competition included Sara Bareilles' project ‘The Blessed Unrest,' Daft Punk's ‘Random Access Memories,' Kendrick Lamar's ‘good kid, m.A.A.d city' and Macklemore + Ryan Lewis' ‘The Heist.’

Of course, the cameras were focused on each nominee as the winning album was called, and when the winner was announced -- Daft Punk's 'Random Access Memories' -- Swift's reaction was caught on camera, and the GIF has gone viral in a hurry.

Her mouth quickly fell open in surprise as the "R" syllable was drawn out by the announcer, making it sound like maybe, just maybe, 'Red' was the evening's biggest winner. Anyone would have had the same reaction, if in the first mili-second, it sounded like their album was going to win.

Everyone sitting around Swift -- including her parents, who were next to her -- had the same response and even physically responded to the hope (and then devastation) by reeling back in surprise with wide eyes until reality set in.

As any Grammy nominee would be, the 'All Too Well' star appeared crestfallen, but being the classy gal she is, Swift immediately began clapping for Daft Punk. She didn't pout, roll her eyes, or storm onstage ... and she even gave a small smile, coming to terms with the fact that she wouldn't be bringing home a Grammy in 2014.

Swift's efforts to graciously lose make her a graceful winner in our book!

Watch Taylor Swift's Reaction to Losing Album of the Year at the Grammys