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Since neither the Correct nor the Incorrect object starts in the Selected state, your description would suggest one of two options. The trigger to change the correct object's state may not execute. It looks to be correctly formed, so if it is not firing, it is because its conditions are not met. If it is functioning correctly, then the wrong trigger is firing regardless what variables are true. That means  the problem is in its conditions,

The starting point to troubleshooting this is to create textboxes with references in them for each letter. I would include a reference to the letter, and the corresponding T/F variable. There are so many, you may have to put them on all on a different layer that you show when Submit is clicked. You should also give the correct and wrong buttons a different color for their selected states, and move them onto the stage, where you can see them.  All of that may give you a clue as to where the problem is occurring.