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Choose the most appropriate word from the options given below to complete the following sentence.

He could not understand the judges awarding her the first prize, because he thought that her performance was quite _________.

1. superb
2. medium
3. mediocre
4. exhilarating

C. Mediocre meaning not very good, not up to par, average.  Her performance was average and not worthy of $1^{\text{st}}$ prize.
by

I was sure about (A) and (B) is not the answer but I was not knowing the meaning of (C) and (D)..!! would that be good to make a guess work in this question (only for word meaning type of question)..
If you do like that for 2 choices in word meaning questions, I suggest to either guess blindly or to choose the one you think is correct and then mark the other. Because most of the time they give words so that what we think is correct would be wrong unless we actually know the meaning. And try doing this in practice tests and do it for GATE only if it works during practice.
exactly...!! in between option (C) and (D), I thought (D) is the answer, since the word "exhilarating"  sounds similar to exile.. and I made this option as correct.. yes I'll experiment this in the next.. If it works I'll choose always opposite the one which I think is correct in such question..
so it is a gate exam!
nice explanation

He could not understand the judges awarding her the first prize.

Means according to him, that girl must not have got the first prize.So, her performance need to be inferior in this boy's eyes.So, mediocre is best here.

It is like he was thinking something else, something else happened.

Here, superb and exhilarating would imply that the performance was brilliant. But, the fact that he could not understand why she got awarded the first prize indicates that her performance was not that amazing in his opinion. So, A and D are incorrect. Medium is more used as a noun, and denoted intermediate in quality, value, etc. So, B is incorrect Mediocre is used as an adjective (to represent quality) and means low in performance, i.e., normal and not extraordinary  and C is the correct choice.

Superb- very good, excellent.

medium- halfway between two extremes of size, amount, length, etc.; average

medicore- of only average quality; not very good.

exhilarating- making one feel very happy, animated, or elated; thrilling.