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I suspect that the problem is that he file is not an ePub format eBook which is often used with the iBooks app, but is in the Apple proprietary .ibook format that is produced by the iAuthor software. I know the .ibook format is based on ePub with Apple specific extensions to better handle them being interactive but I have never seen details of the extensions.
I have no idea of those extensions mean a reader capable of handling ePub format can handle .ibook format if the file extension is changed, but I would be surprised if it was that easy. Still it might not hurt to try!
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