Report filtering by cell choice

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I hope to set up my report so that if a specific choice in a column is selected, the respective row will no longer show up as part of the existing filter. So: if XYZ column contains #3 choice (in dropdown), then that row will disappear from the report (but of course still be in the master sheet).

In this example, once "#3 archive/remove" was selected and the report saved, the whole row 12 would no longer appear in the report:

Can anyone assist? Thanks.

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