That leaves the UFC with a few different options: 1) Give Belfort a title shot in Brazil or some other location not known for its stringent oversight of MMA events (but, c'mon, probably Brazil), 2) Encourage him to apply for an exemption in Nevada, hoping that the more transparent approval process might legitimize his testosterone use, 3) Use the promise of a title shot to coerce him into getting off the juice and fight au naturel, or 4) Don't give him a shot at all.
Option 1 is probably the easiest to implement, but also the riskiest. The UFC is the fight promotion that loves to boast about how it saved MMA by "running toward regulation," let's not forget. How would it look it if has to outsource a title fight just to enable the drug use of one of its fighters? And what if Belfort wins? What, we're going to keep the UFC middleweight champ in Brazil the way you'd lock a crazy relative in the attic?
Options 2 and 3 look better, but one requires the NSAC to admit that it doesn't care how you ended up with low testosterone, and the other requires Belfort to admit that he doesn't really need TRT after all.
Option 4 might seem like some form of karmic justice, but it's actually pretty unfair to Belfort since the UFC essentially would be punishing him for something it was totally fine with at one point, then changed its mind on when it become a public relations headache.
The point is, there are really no good options here. Not for the UFC, and not for Belfort. Is he the No. 1 contender? Based purely on wins and losses, absolutely. Can the UFC tiptoe around the testosterone issue all the way to a Belfort title fight, without tripping over its own feet somewhere along the way? I doubt it.