What would you do?

[tibear]

I'm sure you meant to say F1, not F2.

Anyway, as soon as an umpire says "Time". Nothing may take place, even if the umpire calls time in error.

So I would disallow the hit, move the runners up a base and continue with the game.

Sure, there will be alot of yelling and argueing. (With good reason.) However, as I indicated before, once an umpire calls time.. That's it.
Time is called. Period.