IU covered hundreds of games during the Olney tournament. Here is the first of many plays reported…

 

With runners on first base and second base and no outs, the batter bunts, and the ball rolls in fair territory down the first base line. The batter runs past the ball, drops his bat, and the bat settles half in fair territory and half in foul territory. The rolling bunted ball strikes the stationary bat, the ball stops, stays in fair territory, and all runners are safe. There was much on-field discussion and three opinions were "expressed":

 

A) Batter interference. The batter is out and the runners return.

B) Foul ball. Add a strike to the count. The batter continues to bat.

C) This is nothing, "play on".

 

Which should the umpire do?