Thanks for the assistance of @TobyMak for helping me (us) figure this out
There is a combinatorial approach to this problem. First, the total number of possible sets of solutions is $4^{12}$. Of these, the number of sets of 4 different problems is $\binom{12}{4}=\binom{12}{8}$.
Then, we turn to identifying the number of those sets of 4 questions that are all incorrect. For each question we choose, 3 of the possible answers to the question are incorrect, while only one is correct. Since we are choosing 4 questions, we multiply by 3, four times, to get the number of possible incorrect sets of 4 questions. this leads us to the following:
$$N(\text{4 Incorrect Questions out of 12})= 3^4\binom{12}{4}$$ and accordingly:
$$N(\text{4 Correct Questions out of 12})= \binom{12}{4}$$
This is the same as the number of options of 4 questions out of the 12.
(Side note: This actually tells us the total number of possible combination of either 4 correct or 4 incorrect answers, of 4 out of 12 questions is $(1+3^4)\binom{12}{4}$)
Now then, the probability will be $$100\frac{N(\text{4 incorrect questions out of 12})}{4^{12}}=100*3^4 \frac{\binom{12}{4}}{4^{12}}=\frac{1,002,375}{4,194,304}\approx 0.238985 \%$$, because we have $4^{12}$ possible choices and $N$ possible combinations of 4 incorrect answers.This is equal to the answer you gave via the binomial distribution.