Please, could you post the schematic of you solution?
I do not understand how it works. How do you manage to get 3 states (LED ON, blink, OFF)?
For your information, the solution I proposed is designed to be connected to an ADC, so there is no notion of high/low level.
I may have misunderstood the initial problem, but when I see that LED blink rate is 2s (0.5Hz), I doubt that speed is a real problem for FaizanHamayun.