Both front O2 (aka: air/fuel ratio sensor) and rear O2 sensors are enabled and working ok?

 

Yeap both o2 sensors are fine ...

 

Pedal position sensor?

 

*Update*

Resetted the ecu
Redid the fuel trim (it went haywire after the reset)
The jerk only happens when i just start the car
After driving 3 mins, the car functions properly. No more jerk when the rpm drops.

 

When you say after driving 3 minutes does this mean that you have warmed it up and then drove? Whether or not you are in closed or open loop when you first drive is very important.