Results of Poll on GK pick up ball after AR flag

Lots of interest in this poll! I hope this analysis generates some discussion. Please comment. Here’s the scenario again:

“Red attacking out of their half and send ball high and long over heads of Blue defenders and one Red attacker standing in offside position. AR raises his flag, but you wave it down. Ball is just outside of PA and GK comes out and picks up ball.”

This situation tests the letter of the law against the spirit of the law and examines our ability as referees to put the game in perspective and keep the game fair for all.

Choice 1: Let play continue. 1 of 18 polled
While I’ll say there is NO absolutely right answer, to this situation (as you will see); there is a wrong answer, and this would be it. SOMETHING has happened and play cannot continue: the other choices allude to possibilities, either a foul for deliberately handling the ball, outside interference, or offside. The question becomes, what to call it and how to handle it.

Choice 2: Direct free kick. 16 of 18 polled
This choice would be the obvious one, certainly in keeping with the letter of the law. The referee has not stopped play, waving down the AR’s offside flag. This would be the correct answer IF you felt the goalkeeper tried to gain some advantage by playing the ball with his hands outside the penalty area. But if there was no opponent around, was that what was really happening? What if the goalkeeper saw the AR’s flag go up, other players stop playing, and assumed/expected the whistle would follow as he picked up the ball to send it back down field for the presumed IFK restart?

Choice 3: Dropped ball 0 of 18 polled
This choice might fit if you decided there was some kind of outside interference. Sure, you recognized the attacker pulled up when the AR’s flag went up. It appears the goalkeeper may have been confused seeing the flag up and just assumed the whistle was blown, so he came out of the penalty area to pick up the ball to send it back for the offside restart. Hmm, could a flag from the AR be considered outside interference? Is it interference at all, especially if it is raised in error? Was the AR’s flag an error? How different is an AR's flag raised prematurely or in error, different from a Referee's whistle blown in error?

Choice 4: Indirect Free Kick 1 of 18 polled
Considering Law 11, this choice is still viable. The “moment of judgment” was when the ball was kicked by the team of the player in the offside position. That moment of judgment continued until the point the goalkeeper controlled the ball. Yes, at one point you did decide their was not “active play” and you waved down the AR’s flag. Given what’s transpired, you might wish you could undo that “wave down” because that would let you go back to the AR’s flag and call this offside. Well, given all that, it seems the offside player’s position DID indeed interfere with play, yes? Even though you waved down the flag, you were still within the same moment of judgment. If you determined the player’s offside position did indeed interfere, you can still call the offside infringement. This choice combines the application of Law 11 and oft referred to "Law 18, Common Sense."

I will go out on a limb and say that I would choose #4.

I hope this gets you to think a little. Having read this analysis, would you change your mind now? Post your comments; continue the discussion.