H1 B approved but change of status from H4 to H1 denied

[paragsehra]

My wife is on H4 Visa and living in the USA. She had applied for H1b visa and was picked in the lottery and received the receipt number. However, during this time we traveled to Canada for a day.
And we both are in USA currently.

Today she received the notice stating that my H1b is approved and the change of status from H4 to H1 has been denied since she left the country.

My question is what are the options? to get the change of status approved.

Please advise.
Thanks for the help.

[newacct]

To go into H1b status, she would either:
1) Leave the US, get an H1b visa at a US consulate abroad, and re-enter the US on the H1b visa to be admitted into H1b status. If she is a Canadian citizen, she does not need to get a visa, and can just re-enter with her H1b petition approval to be admitted into H1b status. Or
2) Have the company file another I-129 for change of status to H1b status. (The company might not be too happy about having to do it again.)

[onsccwg833]

In case USCIS denies the H1B COS, your visa status in the US will remain unchanged.