There must be at least 8 tracks, four of which must be recorded by microphone. DI does not count as a mic track but is one of the eight. You must also have overdubbing i.e. you can't just record everything at the same time - at least one track must be added whilst listening to the previously recorded tracks.
What mics have you got? Guitars usually sound better recorded by mic anyway than by DI. What's your recording set-up?
We have struggled in the past with this task but not with track count or microphones, but with the use off effects. This year we have chosen a song that has lots of different guitar layers and each with it's own effects. The songs chosen for these tasks were:
I would honestly say don't complicate it. All they're looking for is compression (dynamic processing) reverb (effects) audible but not overdone. The more you do the more chance for making mistakes. When you build up layers of effects they start to interfere with each other and this is very hard to balance for inexperienced students.