(b) Contents of response to request for amendment. When we respond to a request for amendment, we will tell you whether your request is granted or denied. If we grant your request, we will take the necessary steps to amend your record and, when appropriate and possible, notify prior recipients of the record of our action. If we deny the request, in whole or in part, we will tell you—

1. (1) Why we denied the request (or portion of the request);
2. (2) That you have a right to appeal; and
3. (3) How to file an appeal.