Is there any way to hide jailbreak from showing in the settings menu???

I don't believe there is. If you're taking your iPhone to Apple, the best bet is to do a restore.

 

Are they going to arrest you if they see your phone is jailbroken ?

 

People have been refused service, I believe. I can understand why.

 

All current firmware's are jailbreak-able, so you can always re-jailbreak after your appointment (which depending on the severity of the issue could happen anyway if they just replace your phone). I'd suggest doing a full backup including backing up your jailbreak apts with something like pkgbackup, and then do a full restore and see if the problem persists. If so, go to your Genius appointment with a freshly restored iPhone and show them what's wrong with it. Once it's fixed or replaced just restore from your backup.

 

This. JBing is so easy and basically fool-proof on 4.3.3 that there's no reason not to just be safe and do a restore (after you backup everything) before you bring it in.