Maybe someone else can come up with a succinct formula, but I kind of piece-mealed this one together and it seems to work. Maybe if I get more time later tonight I'll take another look to see how it can be improved. Anyway, in cell O12 try this (and copy down):
=IF(COUNTIFS(K12:N12,"Please select from list")=4,"",LET(a,CHOOSE({1,2,3},COUNTIFS(K12:N12,"UNSATISFACTORY"),COUNTIFS(K12:N12,"SATISFACTORY"),COUNTIFS(K12:N12,"EXCEPTIONAL")),
IF(COUNT(FILTER(a,a=MAX(a)))>=2,"Tie",CHOOSE(MATCH(MAX(a),a,0),"Unsatisfactory","Satisfactory","Exceptional"))))
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