Not as fucked as saying USC because a much scarier law applies to that but it's not good either. Probably falls more fraud. I think they just keep that info locally or check credit agencies and aren't required to ask the question by law (though they say they do it to make complying with laws easier). Was there another option for resident alien? Just call them or send a secure message and tell them it was a "slip of a pen" and have them correct it. If they correct it, great. If they don't, apply somewhere else that has an option for resident alien or doesn't ask the question at all.