Ok then time to move my response into an answer, because it seems you just want to exclude categories from the loop in the above code..
Assuming you’re alright to modify this file(a plugin update would overwrite it), then simply conditionalise your loop like so..
<?php
$excluded = array( 1, 2, 3 );
foreach($categories as $category)
if( in_array( $category->cat_ID, $excluded ) )
continue;
else
echo '<option value="'.$category->cat_ID.'"'. selected( $category->cat_ID, $_POST['ucn_submission_category'], false ).'>'.$category->name.' </option>';
?>
Untested, so let me know if any problems.
Replace 1,2 and 3 with the IDs of the categories you wish to exclude.