At the high school level (or above) or at a middle school competitive level, I always go with your option 2. Whatever happens during the 5 seconds happens and I deal with it.
Middle school rec I usually just call them back and tell them to inbound properly, unless I have to do it repeatedly, then I warn the coach once and then use your procedure 2. I think that's the only one you can specifically justify with the rules.
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Yom HaShoah
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