Seller wants to back out due to inspection results

[Sean Lesser]

I am hoping to get advice, I have a contract on a home and the inspection period ends today. We signed the contract to only need repairs on the 4PT inspection(if needed) and it came back with cloth wiring which is uninsurable. The seller said they are unwilling to fix it so I am hoping some experts here can weigh in on my situation. 

*Can the seller walk away because I won't increase the sale price to accommodate the fix even though it was my only stipulation in the contract?