The two year foreign residence requirement for J1 visa holders may only be satisfied in the country of nationality or last permanent residence as indicated on SEVIS DS-2019 Form. If you are a citizen of one country and a permanent resident of a second country, you must satisfy the home residence requirement in the country of last permanent residence indicated on SEVIS DS-2019 Form. 

The country should be listed on the SEVIS DS-2019 Form. If there is an error on the form, the State Department takes the position that the USCIS, not the State Department, must correct the error, if the program sponsor will not correct the error. 

In many instances, the two-year foreign residency requirement for J1 visa holders may be waived by submitting the J1 waiver application to U.S. Department of State.