Your AIEEE rank is good .. you have options of NIT trichy , NIT warangal also in bit's Pilani you have a chance of getting the decent options.
dropping is not a bad idea.. but if u will not work hard cudn’t succed thn you will end up wasting ur precious one year.. so think twice b4 u take any decision.
Please feel free to post as many doubts on our disucssion forum as you can. We are all IITians and here to help you in your IIT JEE preparation.
All the best for your future.