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Your Q's second part is not clear to me. But for the first part you can write a formula like :
CASE( Text(Pick1) +'&' + Text(pick2) , 'B&C, 'PASS', 'FAIL')
You can concatenat two pick list values having "&" (or any char you want) between. If value is equal to B&C then return Pass otherwise FAIL.Hope this will help.