I can only imagine using 1170px as a preference if you are designing with bigger screens in mind. Try reading this http://webdesign.tutsplus.com/articles/life-beyond-960px-designing-for-large-screens--webdesign-7348
The issue you have is that your file does not appear to be designed to either size.
What grid are you designing to as it don’t seem to fit to any of the standard ones?
Typography is not good especially the font choices.
The shadows on sections don’t really work.
Slider arrows don;t align to the rest of the page and having only one down the bottom looks strange
The grey colouring with the black is very cold and unappealing (i appreciate the file is called B&W)
Alignment is all over the place e.g. footer does not align to any other element, nor does the nav and the testimonials and title blocks which are narrower than the main content do not line up
It will look empty if it is a WP theme until you populate it or install the demo content ( check documentation for guide). A WP theme is NOT like a site template – it is a shell that needs content to look like the demo or how you want it.
Sorry but with all due respect this is never going to pass – there are tons of fundamental issues with design, typography, alignment, etc
Actually I am not sure you need the extended license at all but you definitely need permission and potentially some kind of agreement with the author before anything else. There is no point buying an extended license if they then refuse permission right.
Almost certainly you are trying to install the wrong file. In your downloads page here select “installable WordPress file only” and try that one
You need permission from the author to include it in your file. In some cases the auhtor may want a % of profits etc but on stuff like Layer Slider I think they are generally ok with it as long as they are asked first.
Lose the blue footer it clashes with the rest of the page
2 or 3 – fundamentals like typography needs a ton of work as does spacing, it needs a lot more too it and careful with imaginative layouts and shapes – while it makes it different it is also a nightmare to try and code which will be taken into consideration by a reviewer