Actually, I have been trying over this problem during finding out a tight lower bound for the rank of the matrix $(A+B)$ where $A$ and $B$ are $m\times n$ matrices .
Though we know an upper bound that is $r(A)+r(B)- \max\{ rank A, rank B\}$ but I can't figure out a lower bound .
Obviously, the rank of $\hat{a}\hat{a}^t$ is $1$ in this problem, and if $\hat{a}$ lies outside the column space of $P$, then the rank of $S$ is at least $4$ . Help me out what happens if $\hat{a}$ lies in $C(P)$ . But, the answer provided is $3$ .
Hint. Write $P=S+(-\hat{a}\hat{a}^t)$ and consider the rank of $P$.