I got this recommendation from a lawyer (not the one who did our application):
It is necessary to understand the impact of appealing or reapplying after the refusal. If the appeal option is chosen, you have to understand that if you lose the appeal, you may no longer sponsor her ever again if the IAD has already decided on the matter. This is referred to as res judicata. Appealing is a good option if the spousal sponsorship had been prepared in the right manner and had all relevant information. I believe the case was incomplete and that is why this led to the refusal. I believe that a best option should be to submit a new application.
I guess I will submit new application. Ugh...