NCAA Quiz #2 question

[Durham]

Regardless if you have taken the quiz or not I want to know what you think about this question and why. I know what they feel is the correct answer, but the rule they reference does not definitively support their position. So what do you think?

R1. B1 hits a high fly to right center. R1, anticipating a catch, holds halfway between first and second. At the time the ball is dropped by the outfielder, B1 is just behind R1 between first and second. F9 picks up the ball and throws wildly into dead ball territory behind third base.

A. R1 is awarded home and B1 is awarded third.
B. R1 is awarded third and B1 is awarded second.
C. Since not all awards mandated by rule by rule can be made in this situation, the umpire may decide which bases to award.