Hi,
1] Revised your Sheet2, D2 Data Validation formula to :
=OFFSET($K$2,($C$2=0)*2+1,MATCH($B$2,$L$2:$X$2,0),IF($C$2=0,OFFSET($K$4,0,MATCH($B$2,$L$2:$X$2,0)),1))
or,
=OFFSET($K$2,IF($C$2=0,3,1),MATCH($B$2,$L$2:$X$2,0),IF($C$2=0,OFFSET($K$4,0,MATCH($B$2,$L$2:$X$2,0)),1))
2] See attached file.
Regards
Bosco