Could you post the part where you extract the selected value of the dropdown. I think you might be making some error there, since as I see, the options you've specified for Test21 and Test22 do not contain any spaces. So if you select these values, there shouldn't be any spaces either.
Also, considering the kind of grouping you want to achieve in your dropdown, I think
you should take a look at the
OPTGROUP tag used in conjunction with the <SELECT> tag.