Both answer and explanation are correct.
Suppose we are running the co-related query for first tuple of S1, means score = 100. Now for this tuple we get 4 distinct values of S2.score (100, 90, 80, 70). All of these values are greater than or equal to 100.
Therefore Count(DISTINCT S2.score) = 4, and it is greater than 3, it makes the co-related query output false and this is why 100 is not included.