How to read data from arduino with raspberry pi via I2C

I have connected Raspberry pi 2 model B with arduino uno via Bi-Directional Level shifter.

Raspberry pi    GND    ----------   GND     Arduino
                3.3v   ----------   5v
                SCL    ----------   A5
                SDA    ----------   A4

Hope my I2C connection is correct ?

and my Arduino is connected to 8-Channel Relay Board.

Now I have written code in which I can control the Relay board by Raspberry pi. For ex if i Press '1' the Relay 1 goes high.

Now I want to send data back from arduino to raspberry pi in order to cross check if Relay 1 is high or not, if Relay 1 is high then it should send some data back to Raspberry pi or else not.

My Rpi code is

import smbus
import time
# for RPI version 1, use "bus = smbus.SMBus(0)"
bus = smbus.SMBus(1)

# This is the address we setup in the Arduino Program
address = 0x04

def writeNumber(value):
    bus.write_byte(address, value)
    # bus.write_byte_data(address, 0, value)
    return -1

def readNumber():
    number = bus.read_byte(address)
    # number = bus.read_byte_data(address, 1)
    return number

while True:
    var = input("")
    if not var:
        continue

    writeNumber(var)
    number = readNumber()

My Arduino code:

#include <Wire.h>

#define SLAVE_ADDRESS 0x04
#define RELAY1 9

int number = 0;
int state = 0;

void setup() {
    pinMode(RELAY1, OUTPUT);

    Serial.begin(9600); // start serial for output
    // initialize i2c as slave
    Wire.begin(SLAVE_ADDRESS);

    // define callbacks for i2c communication
    Wire.onReceive(receiveData);
    Wire.onRequest(sendData);

    Serial.println("Ready!");
}

void loop() {
    delay(100);
}

// callback for received data
void receiveData(int byteCount){

    while(Wire.available()) {
       number = Wire.read();
       Serial.print("data received: ");
        Serial.println(number);

        if (number == 1){

            if (state == 0){
                digitalWrite(RELAY1, HIGH); // set the LED on
                state = 1;
            }
            else{
                digitalWrite(RELAY1, LOW); // set the LED off
                state = 0;
            }
        }
    }
}

// callback for sending data
void sendData(){
    Wire.write(number);
}

Now if I type 1 and due to some loose connection Relay 1 doesn't goes high, So in this case I want the arduino to take data from relay board and send it to Raspberry pi every time.

It will be great if someone can explain also that how it works.

Hope I was able to explain the problem. I have done lots of research but was not able to find some answer.

I am a beginner in python so please help me.

Thanks in advance.