Object Lab has recently launched their first iOS app using iBeacon. It took them 3 attempts to get it approved. I would recommend you to create a video which demonstrates how your app works and send it to them.
Generally they ask for hardware as well but mostly it's not feasible for us to provide them with one. Object Lab had to send them instructions to setup hardware at their end and to test the app. THEY WILL NOT APPROVE UNLESS THEY KNOW ITS WORKING. So I would recommend to send a video and step by step instruction of how to setup hardware at their end to test it out.