By "rejected" do you mean it didn't place or you weren't allowed to enter it in competition?
I've been entering stuff in fairs for years. If it isn't entered in the correct category it will not be judged.It is up to the entrant to make sure the item is entered correctly. sometimes there is a set of criteria that the item is judged by, other times it is at the judges discrection.I've also judged at the Jr. Fair level. we have standards we follow. sometimes you get a project that is great but the entrant didn't follow the guidelines set. we can't place it. it wouldn't be fair to those that read and followed the guidelines.
that said, I think your quilt is very nice and i can understand your disappointment. you should be proud of your work.