Since you're pretty new here, I just answered your question... but you really should make it as easy as possible for folks to help you. Here[/url] is a good article explaining how to ask a question that will get answered.
Now that that's out of the way...
This is one way to solve it
SELECT y.StateID
, y.DistrictID
, y.StateID
, y.NewGroup
, SUM(VoteCount) AS TotalVotes
FROM (
SELECT x.StateID
, x.DistrictID
, x.CityID
, x.Grp
, CASE WHEN x.Grp IN ('Xyz','Wxy','Vwx') THEN 'Other' ELSE x.Grp END NewGroup
, x.VoteCount
FROM
(SELECT 1 AS StateID, 1 AS DistrictID, 1 AS CityID, 'Abc' As Grp, 10 AS VoteCount
UNION ALL SELECT 1, 1, 2, 'Bcd', 10
UNION ALL SELECT 1, 2, 1, 'Cde', 10
UNION ALL SELECT 2, 1, 2, 'Xyz', 5
UNION ALL SELECT 2, 1, 2, 'Wxy', 6
UNION ALL SELECT 2, 1, 2, 'Vwx', 3) x ) y
GROUP BY y.StateID
, y.DistrictID
, y.NewGroup;