I personally think Paypal is just making you do "busy work". If they consider you high risk, you are prob done no matter what you do. If I was in your position, I would pack up and go stealth.
Unless you can provide more info on what you were selling, I can't really suggest what you can say.
Other forum members might chime in to help but you need more disclosure. If you are selling VeRo and since you are new to the forum, I can't help you much =(
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