I'd vote Option A, but can I suggest a slight change to it. As drg330 said, rules are rules, so how about Option A, let them go through this season with the player, but since they used an illegal FP for 2 seasons, they are not allowed to have one for the next 1 or 2 seasons as punishment? It won't affect him for this year, but there still be will be consequences for not following the rules.