What if H1B is denied after an RFE


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I have recently filed an H1B Extension and have been issued a RFE.  Our lawyer is trying to respond to the query. Meanwhile, I would greatly appreciate if you guys could answer my questions:-

1. What are my options if H1B is denied. I have been told we could file a new petition ? What else are our options.

2. I heard that if I have an approved I-140, Employer can file a Cap Exempt H1B petition based on the approved I-140. Can anyone explain this ? 

3. If H1B is denied, what is the grace period to leave United States ?

Any other options you guys could suggest so I can prepare myself better to handle this.

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