Leo
This is a great discussion.
On the actual play, there would have only been 1 out since the Infield Fly rule does not apply on foul balls.
In the what if scenario of the ball being fair, I think that the batter is out on the infield fly rule regardless if the ball is caught or not. That is its own rule.
Now the R1 I would call out due to his interfering with field attempting to make a play on a batted ball. (7.09 L?)
Scott