Highlight and distribute

[fatalcore]

Hi friends,
I am trying to make an excel file to basically highlight the file name in sheet1 among a data set if any name matches in sheet 2, using a code
Then distribute the highlighted files in a separate sheet and all the files in another sheet, using another code.

I have tried to explain my problem using a dummy sheet and data. I was wondering if somebody could help me out.
Please suggest me if there is something better way could be done than the current method I am doing.
I have used 5 group as an example, this group can vary like 6 or 7 or may be more.
best regards,
me.