Lets say MOC "A" has 1 slot, a highly competitive district and nominated 10 candidates. The top one turned down USAFA to go to USNA, #2 wasn't medically qualified and #3 is the offered Appointment you speak of and your DS/DD was #4 (A highly competitive candidate) MOC "B" representing a not so competitive district within your state only submitted 2 nominations but of those 2 one went to USMA and one to USNA then you're DS/DD could still technically be found a slot. Anyway... Don't give up!!!
Let me change the facts, in this situation, if DS/DD "looses" slate and the winner is qualified and accepts appointment and you have no other nomination source, then you are moved to NWL. Then you can get pulled from NWL. Is that correct?
As I was typing, I think kinnem answered my question.