All right, I'll give this a shot without checking a rules book. (Good to get the softball rules blood flowing.)
The IFF penalty is enforced as soon as the ball is fair. (In this case, when it hit B1.) Since B1 was retired the moment the ball became fair, I'm gonna say the ball hitting B1 is interference by a retired runner which causes the ball to become dead. B1 is out and the runner closest to home (R1) is out. The subsequent play on R1 is of no consequence.
Am I close?
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