Answering for NCAA but I think NFHS would be the same:
B was last in possession during the down so they have the option of accepting the penalty and the penalties will offset or they can decline the penalty for A's illegal formation foul and (temporarily) keep the ball.
A then has the option of accepting or declining the penalty for B's illegal block in the back. If they accept, the penalty will be enforced under 3 and 1 (all but one). If A declines, the result of the play is a touchback.
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Even if you’re on the right track, you’ll get run over if you just sit there. - Will Rogers
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