b1 b2 visa conversion to f1 got denied


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hi, my name is Ashwin. i first entered the U.S in the month of April 2015 and stayed until Oct 2015, on a B1/B2 Visa while my stay here in the U.S  i had applied for F1 Visa for which the reply was pending until i left the country in October 2015, in order not to  loose my 10 years multiple entry B1/B2 Visa i left the country and went back to India. 
i flew back to the U.S  in the month of Jan 2016 and i'm currently here. i again applied for a F1 visa in the month of April 2016 reply for which was still pending , i received a Request of additional Evidence to be submitted to the USCIS in the month of Feb 2017 which was submitted. 
 I received a denial letter on April 17th 2017, they have suggested me to file Motion I-290B (an appeal )within 33 days. 
on the other side if this , My wife is a green card holder and has applied for U.S Naturalization process in the month of Oct 2016, currently she is in line for an interview date. 
Please suggest me if 
1.  I should file a I-290B in the mean time or just stay without appealing until she becomes a U.S Citizen. 
2. will there be any status issues or questions raised for me when my wife will sponsor my green card process? 
3. Is it advisable to file for a green card right now for me , while my wife is still in the process of getting her U.S Citizenship? 
4. will i be considered as a case of overstay or an illegal immigrant? 

All this status change was applied by me , as it  was suggested by a lawyer who said a green card process for me cannot be applied when am on a B1/B2 Visa and that i had to change into a non-immigrant visa like a F1 visa 
5. Please suggest me what is the best thing for me to do right now ? 

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