Batting out of order

[rwest]

Rule 7-2-C-2-D of th '04 ASA Rule Book says...

If the batter declared out under these circumstances is the third out, the correct batter in the next inning shall be the player who would have come to bat had the player been put out by ordinary play.

Rule 7-2-C-2-C Exception says....

If the incorrect batter was out as a result at their time at bat, and is scheduled to be the next proper batter, skip that player and the next person in the line-up will be the batter.

Ok, thats what the rule book says. Now the situation...

The top of the line-up is due up in the top of the 3rd inning. Batter 1 is thrown out at first. Batter 2 fails to bat. Batter 3 bats in his/her place, batting out of order, but is thrown out at first. So now we have two outs.

Batter 4 comes to the plate, but before the next legal/illegal pitch, the defense appeals, getting the 3rd out.

Now, who bats the next inning? I think its batter 4 because of the exception above. Am I right?

Thanks!