Macbook air late 2012 won't turn on - Shows blinking no folder icon

Hello,
I bought my Macbook air in October 2012. Last night I tried updating my OS but the computer froze and I had to force restart it in the middle of the download. When I attempted to turn it on again it shows the blinking folder with a question mark on the white screen. It took around a minute for it to appear after the startup chime. I tried starting my Mac holding the option key and the only drives available are the internet recovery drive.
Please help me!
Thank you for every answer!

Check  the Software update and run it if one is available.
If available, install the update.
MacBook Air SSD/Flash Storage replacement Program.
"Apple has determined that certain 64GB and 128GB flash storage drives used in the previous generation of MacBook Air systems may fail. These systems were sold between June 2012 through June 2013."
http://www.apple.com/support/macbookair-flashdrive/

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