I got this answer from apple:
Aug 3, 2011 01:13 PM. From Apple. 3.8
We found that the rating you've selected is not consistent with the content of your app, > as required by the App Store Review Guidelines.
Since your application contains mature and suggestive themes, this should be reflected in the frequency choice in the Ratings section.
To update the rating you must edit the App details in iTunes Connect. Select Manage Your Applications, open the App Details view and click on Edit Information. From the Edit Application view, select the Ratings tab and select the desired rating. Don't forget to save your changes when done.
While your iTunes Connect Application State will show as Rejected, we do NOT require a new binary if you only need to change your metadata. (A new binary is required only when you have to also make changes within the app.)
If you only need to change your metadata, please visit iTunes Connect, Manage Applications, and revise the appropriate metadata values or settings then click the "Save" button. Do NOT click "Ready to Upload Binary" unless you plan to submit a new binary. If you click the "Ready to Upload Binary" button, a new binary upload will be required.
I have made the modifications.
Now what do I do?
The app still shows as rejected, not "Waiting for review" or "In review".
I don't want to hit the "ready for binary upload" button as it already took them 2 weeks to review and it clearly states in their response that there is no need to do that.