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1. All you can do is appeal to the next level commander, but they will generally stand behind their lower level command decision. There is no other legal option available for you to attempt to work around the command position here. Separation is a command prerogative.
2. If you get an Honorable Discharge, you'll get the GI bill. If you don't you won't. That is the rule. So, your only options if you get a General is to later file a DD Form 293 seeking to upgrade your discharge after it has happened.