[KWH]

Master chief is correct.
See 2004 NFHS Case Book 10.5.2 SITUATION A
A leads 16-7 with little time remaining in the fourth period. A is deep in its own territory. A1 goes back to pass from his own end zone. A2 holds B1. A1's pass is intercepted and returned for a touchdown. The captain of B asks to refuse the score and penalize the holding foul which would result in a safety. In this case, B would have a chance to score a touchdown and 2-point try to win the game. RULING: The penalty for the holding foul may be accepted or declined.

Comment:
The situation should (perhaps) include that the hold by A2 occured in A's end zone for clarification purposes. The Case Book committee may have felt this wording was not necessary as the only way a safety is possible is if the hold was in A's end zone.
Message to the committee:
Clean it up, change sentence 3 to read, A2 holds B1 in A's end zone.