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BoBo and FootballRef05, you are incorrect in a few things you mentioned.
R is not in possession when the whistle is blown, K is still in team possession.
You said R can take the result of the play which would be take the ball where the whistle was blown. This is not true cuz if an IW occurs during a legal forward pass or kick there is no option, the ball is returned to the PS and the down is replayed. Now the penalty does add another option. Since K fouled, R can accept the penalty and have the penalty enforced from the PS. If R declines the foul, the down MUST be replayed, so obviously they will accept the penalty cuz at least then they move them back 15 yards for the 4th down play.
How to properly handle IW's is pretty important cuz to do so wrongly can have quite drastic consequences.
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