I don't really understand these things. Apparently the author does not either since he/she claims to be shocked by this development. I guess you are free to use the image for as long as you want if she did make a disclaimer. But if she did not, well, I guess you know more about the intricacies of your contest and I wish you well.
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We as well stated in the post to reward them for the time spent to put that up. That amount to giving enough consideration to reserve the right to use the image