If a timely filed application for extension of time is denied, either because the application is considered frivolous or the person engaged in unauthorized employment while in status, then the person is considered to have accumulated unlawful presence. Therefore, you are going to have to state "yes" on your application.
If your unlawful presence was for more than 180 days, you are barred by law from reentering for 3 years (the bar is 10 years if unlawfully present for 1 year or more). If you were unlawfully present for 180 days or less, you are not automatically barred, but it will weigh against you when the counselor officer exercise' his or her discretion with respect to the student visa.
You should consult with an immigration attorney to determine how best to approach your case.
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