Thank you Bob and others for helping me clear this up. I believe it should be a multiple foul situation. If this were a test question I'd say A has the choice of accepting the IP foul which would make it 3rd and 7 from 32 (I hope my math is correct here). In reality I wouldn't give A that option since the IS foul is the better option. I think by giving the captain the choice of accept IS, accept IP, or decline both would be confusing.
Accept IS - 1st down as Bob notes.
Accept IP - replay 3rd down - 3rd and 7
Decline both - results of play as Bob notes.
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