onside kick doesn't touch the ground

[devdog69]

Had a play the other night, that I am now uncertain whether my crew handled properly. My rulebook is at home so I'll ask here. Jr. High team attempting an onside kick, I am linesman on a four-man crew. They kick the ball into the air, it comes down right about on the 50 where K player leaps into the air and catches the ball and lands on the R 48. My line judge is right on top of it and flags it because the ball didn't touch the ground or an R player even though it travelled the 10 yards. The white hat gives the call and tells R they can accept the penalty and make them re-kick or take the result of the play, K's ball. My question is should they have been given the option of an awarded fair catch at the spot of the illegal touching by K? Thanks in advance, Devon.