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It is possible that the "state" field in this form is not mapped to the "state" field in SFDC. Navigate to Admin > Field Management and bring in this "state" field from the form. Verify that it's "CRM Field Map" is the same as the field in SFDC.
Hi Tara - Besides Devraj's comment, are the values in your Marketo normalized with the values you are capturing in SFDC? For example, if you're capturing abbreviation on your Marketo form (CA) but in SFDC the state name is spelled out (California), then the value will not populate. They need to match.