Balk w/hit batsman

[rbmartin]

Rule 8.05 If there is a runner, or runners, it is a balk when.........
PENALTY: The ball is dead, and each runner shall advance one base without liability to be put out, unless the batter reaches first on a hit, an error, a base on balls, a hit batter, or otherwise, and all other runners advance at least one base, in which case the play proceeds without reference to the balk.

So with a runner on third and the pitcher balks immediately before hitting the batter, where does R3 go? Where does batter go?