You need to consult with an immigration attorney to go over the specific facts of your case. Everyone has a story. Everyone has some exception. The bottom line is everyone's story is different. Normally, before 2001, both parents had to be citizens in order for the child to be eligible for citizenship. How did you get your green card? How old were you? Why have you not naturalized yet, especially if you are still in the United Staes. Again, speak with an immigration attorney who can assist you in your case. Good luck.
Mr. Lorenzon's answer to your question does not establish an attorney client relationship, but rather is meant to share knowledge with the general public. For specific advise on your case, you need to consult one on one with an immigration attorney. Mr. Lorenzon can be reached at 216 573 7322 or at firstname.lastname@example.org. All initial constulations are free.
Mr Lorenzon gives excellent analysis
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Determining whether or not a person is able to derive or acquire US citizenship from a grandparent can be very complicated. You will need to discuss your eligibility with an immigration attorney who is well acquainted with transmission requirements and citizenship and naturalization issues.