Assuming UGA, Michigan, TCU, USC make the playoffs...
Rose Bowl is supposed to take the highest ranked Big Ten team that is not going to the playoffs (formerly BCS), which would be OSU this year. The Orange Bowl is only obligated to take the highest ranked at-large team, which should be us at 7th after Bama (6th) gets the honors of the Sugar Bowl. However, the Rose Bowl also has in their contract something called the "cluster clause." This means that they can technically take any 1 team for a closely ranked/grouped number of teams from the same conference. Ohio State believes that this would leave an out for the Rose to take Penn State (8th) so that PSU and their fans could go to the exciting Rose Bowl, and OSU (who was just at the Rose last year) can go enjoy sunny Florida for a change of scenery.