Like you already know if you decide to process AOS your wife will not be eligible to process AOS with you since she's currently back in your home country, that will require her to process CP as as follow to join (FTJ). You should consider returning home to process CP together with your wife.
Regarding what the next step should, if you're processing AOS, you need to go through the AOS process spreadsheet for further guidance on on what happens when - you can find the link to that on the first post on page one of this Thread.
For CP, I recommend taking another look at your selectee notification letter, click on the links provided in it which should take you to the if you've been selected page and steps on what to do.
Thanks for reply and for link.
What does FTJ stands for?
I was also considering to return home for CP processing. However, it means I might loose status in case visa denied? I can't event apply for F-1 again?
Should I decide to proceed with AOS, it is not clear how process goes.
I fill DS260 and request that my case is sent to USCIS. Then I complete all documents and go to interview at local office in Chicago. What about my wife? Should I request USCIS officer to contact home embassy to interview my wife?
Do I have to pay AOS fee for both of us (plus DV administrative fee)? Or is it just one AOS fee and one USCIS fee?