ah ok, yeah then this penalty is correct. Using pictures from the internet is not allowed under the photo guidelines within the criteria: Niantic Wayfarer
You should be alright even though you appealed this ineligible nomination attempt, they will just reject it usually.
Another piece of advice for you, the categories in Pokemon GO are not connected to any criteria or even Wayfarer at all, it is only to categorize Wayspots in the database. For example, K-12 schools are explicitly not allowed by criteria, but they are still available in the category section.