iOS Album-Art Mismatch Post Sync
After digging a lot of sites on the web, also including StackExchange, I finally stumbled on this blog by Kirk McElhearn. However, it only pointed me the right direction. After trying different methods, the correct solution was not to disconnect my iPhone from the internet while I synced, but to disconnect my PC from the internet before I started the sync process. Here is the result:



And voila!

It finally showed the correct album-art. However my problem was fixed only for that particular song. I had to delete all the songs that had mismatched album-art and re-sync those songs again. It was a pain-in-the-a**, but the result was worth it (if you are particularly OCD about keeping your music perfect).