to read the file in step 2 you can use the below piece of code:
OleDbConnection connection = new OleDbConnection(@"Provider=Microsoft.Jet.OLEDB.4.0;Data Source=<<absolute path of the excel file including the file name>>;Extended Properties=Excel 8.0");
OleDbDataAdapter da = new OleDbDataAdapter("select * from <<sheet name in the file>>", connection );
DataTable dt = new DataTable();
da.Fill(dt);
Now you have all the data in a datatable.
You can validate the data and make changes as you want.
For step 3 you can make a procedure for updating the status column on a where clause.
You can call the procedure for every row of the datatable from the code