Hi there,
To answer your questions first: Your hosts files look fine. The only thing I would identify is maybe remove the external IP address for the VM's own hostname, but that's probably not a problem here.
1. The hostname and FQDN are in the correct format.
2. You can leave it Olioweb.vmmark.com and oliodb.vmmark.com for different tiles.
3. You have the 127.0.0.2 entry correct already; it is OlioDB.vmmark.com OlioDB and olioweb.vmmar.com olioweb for the Olio VMs respectively.
If you look at the bottom of OlioWeb0.wrf, you can see the statistics for that run. See this page for more details:
https://communities.vmware.com/message/2020289#2020289
What yours shows is that the Olio workload is running, but is running suboptimally. The majority of all operations are passing. This shows that your workload is probably configured correctly. However ~10% of operations are failing. While it's normal to see a few failures from Olio, this is an abnormally high failure rate.
Olio is a very network heavy workload. To me, the first thing this suggests is some kind of lack of network resources although it could be related to other resource shortages in your datacenter. What kind of network setup are you using?
Thanks,
Rebecca