Unable to update/create picklist item via SDK 3

Unable to update/create picklist item via SDK 3

 I have a picklist  item in my Leads module that has 3 simple items.


In my c# code, using SDK v3 I am updating this picklist like this:


BUT by the time it gets to CreateRecrods it fails and it says the object was not initialized. However, if I do comment out the line that updates the picklist, I am able to successfully update the record. I did check and I do have the correct API name "Lead_Role". My connection works. everything works except the fact that it is just impossible with ZOHO to update a simple picklist and none of their customer supports have been helpful. Spent useless hours explaining the issue to them and none of them can comprehend it. So I will be grateful if someone can assist me on this.