With no outs and bases loaded, the corners are playing in. The batter hits a bouncing fair ball that caroms off the first baseman's glove and hits the runner (R1) who is advancing from first to second base. Had R1 not been hit by the deflected ball, the second baseman would have been able to field the ball then likely thrown out the slow-running batter at first base.

 

The defensive coach thinks that R1 should be out because either:
A) R1 was hit by a batted ball
B) R1 was hit by a batted ball before it passed a fielder (the second baseman) who was in a position to field it

 

The offensive coach thinks that either:
C) The ball is dead and all runners advance one base 
D) The play should continue (no penalties on this type of play)

 

Which is it?