managing iPhone contact groups
Unfortunately, the iPhone Contacts app is not designed to allow adding/removing/editing of iPhone groups. You can use third-party programs to create/remove iPhone contact groups.
There are many such apps such as GroupMe, SmarTr, etc. Problem with those is that it does not direcly create/remove contact groups within the Contacts app on your iPhone.To create, edit, and remove contact groups within the Contacts app on your iPhone, you can use Outlook. Here is a helpful Microsoft-provided guide on how to sync iPhone contacts and contact groups with Outlook.
Finally, to solve the problem with the extra contact group created, you would have to resync your iPhone contacts to your Windows Contacts via iTunes.
1. Before the sync, make sure you have removed any contacts from your Windows Contacts (back up all the *.csv entries to another folder first)
2. On prompt by iTunes, click "Replace contacts". This will delete all your newly-synced iPhone contacts which came under the new group on the accidental sync
3. Finally move back your *.csv files to your Windows Contacts folder.
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