OPT extension denied due to submitting 17 month i20

[desiboy10]

According to new regulations, USCIS is issuing 24 Month OPT extensions. This new rule is effective after May 10th 2016 and all applicants have to submit 24 Months i20 endorsed after 10th may with the application. I submitted my application using 17 Month i20 issued from University.  I received a denied letter from USCIS  on my application because of submitting incorrect i20 (17 Month). 

 

Below are detail events:

1. OPT extension i20 for 17 Month requested in the university on 24th April
2. First opt (12 Month) expired on June 2nd 2016
3. University issued 17 Month i20 on 12th May (They should have issued 24 Month i20 as it was after 10th May)
4. Sent OPT extension application to USCIS on 21st may using 17 Month i20
5. On 25th May received i797 Notice of Action
6. On 30th Aug submitted inquiry on the case using online tool
7. Received response that your case is assigned to an officer and you will be notified within 30 days
8. On Sept 13th Checked mail box and received letter from USCIS ( Date on the letter 26th Aug)
9. Checked with DSO, SEVIS status is completed and hence University cannot generate new i20 of 24 months

 

According to letter, USCIS is suggesting to file an appeal/motion using the form i290B along with all evidences.  University has provided a letter  stating that they couldn’t issue an i20 of 24 Months on 12th may due to technical difficulties (Rule changed transition period).   I’ve only 33 days after receiving denial notice to file an appeal/motion. I'm going to file i290B, will that help? is there any other option?

 

Another concerns to maintain legal status:

1. My first OPT expired on 2nd June 2016. But I had already applied for an extension and hence I was on grace period of 180 days. But now as my application is denied what happens to that grace period?
2. Now once I submit i290B form, can I stay and continue work in the US while application is pending? 
3. What actions do I have to take in order to maintain legal status?
4. How much grace period I’ve?
5. Do I have to leave the country after above grace period?