situation : 2nd and 25 from A 25 yl. Quaterback drops back and rolls left , fakes a pass and begins to run. R drop a holding flag at A's 20 yl (on A 3 ) . During the run U drops a illegal block below the waist at A's 35 yl. ( on A 4 ) . The run ends at A 40 . What option does B team have ?

NFHS Ruling
 

NFHS Options for B:
1) Accept the hold making it 2nd and 40 on the B10
2) Accept the B-B-W making it 2nd and 30 on the B20
3) Decline both fouls and accept the result of the play making it 3rd and 10 on the B40

First off, you must determine the type of play you have. In this case, the play is a running play because it doesn't meet any of the criteria for a loose ball play. The QB didn't pass. The basic spot for this play is where the run ended (the A-40).

We must now sort out the fouls. In this case, we have multiple fouls on the offense. The defense may choose ONE of these fouls to enforce (and both would be enforced from spot of foul). The holding foul by A3 would be enforced from the A-20 taking the ball back to the A-10 after enforcement. The BBW by A4 would be enforced from the A-35 taking the ball back to the A-20 so if team B (defense) wants one of the penalties, the holding penalty would be the better choice for them.

Options offered to team B.
Accept holding, 2/40 at A-10
Accept BBW, 2/30 at A-20.
Decline. 3/10 at A-40.