The right place to experiment with possibilities of the API is API Explorer that you can find at Support -> Developer - API Explorer in your local CivCRM instance or on the Demo site.
All the participants of an event can be selected with:
http://dmaster.demo.civicrm.org/sites/all/modules/civicrm/extern/rest.php?entity=Participant&action=get&api_key=userkey&key=sitekey&json={"sequential":1,"event_id":3}
The update of status can be accomplished with the create action in combination with an already existing participant_id. For example:
http://dmaster.demo.civicrm.org/sites/all/modules/civicrm/extern/rest.php?entity=Participant&action=create&api_key=userkey&key=sitekey&json={"sequential":1,"id":3,"status_id":"Cancelled"}
moves the status to Cancelled.
Success with your app.