In D2 >> =IF(OR(C2={"Native","RCF","Transfer"}),"NO","")

For E2, I see you have a drop down there, but again as stated earlier you can't have a drop down and a formula at the same time.

So, for E2, what do you want?

IF Native, RCF, Or Transfer are selected in C2, then D2 would = "NO" and E2 would = "None"
Do you need the drop down or would the same formula in D2 work?

Also, if at all possible you should stay away from merging cells...