My understanding from reading the rules was that they eliminate the candidate with the least votes and assign all of those votes by their #2 choice. With more than 2 people running there it wouldn’t be Murkowski voters who have their votes reassigned.
Could be wrong here, but that is my analysis of this.
That said I don’t believe Kelley will win.
The lowest vote getting candidate is dropped. The voters that chose that candidate (that was dropped), have their #2 choice added to the remaining candidates and add that to the remaining candidates totals.
There is zero chance that people who voted for the democrat, put Kelly as their #2, high chance they put Murky as their #2. Kelly will get little to no additional votes.