Law 25 takes precedence over law 27. If 25A applies (bid was inadvertent, partner has not called, player attempted to correct immediately he realized what he'd done), then he corrects the bid, and that's an end to it. If 25A does not apply, we're in 25B territory. More on that later.
Here, there was an irregularity (IB by second seat). Third seat stated that he accepted the IB. Attention has thus been called to the irregularity, and the TD must be called. Offender's comment - his "ruling", in effect - is irrelevant, although he should perhaps be cautioned not to make such comments.
Apparently at this point someone called the TD. Good. Now, Joanne suggests that pulling 1
♥ instead of 2
♥ is not inadvertent. She has a point. Nonetheless it's a matter of TD judgement, based on his determination of the facts, and it appears the TD at the table felt it
was inadvertent. So, did the TD rule correctly? Possibly. Possibly not. You had to be there. I note that the ACBLScore Tech Files say that one should "Be liberal in judging that mechanical irregularities are inadvertent".
If the TD had decided Law 25A did not apply, we are in 25B territory. Offender has attempted to correct 1
♥ to 2
♥. Offender's LHO can accept this, in which case 2
♥ stands and the auction proceeds normally [Law 25B1]. If he does not accept it, Law 27 applies. The bid was insufficient, and since third hand has already said he wants to accept it, that's it.
In my Law Book, Law 27 says
Quote
Any insufficient bid may be accepted (treated as legal) at the option of offender's LHO. It is accepted if that player calls.
This does
not say that offender's LHO must call to accept the IB. In this case, third hand has exercised his option to accept by his statement. If he
had called, then if it were ruled a 25A case, he could retract his call and substitute another, and there would be no UI to his partner [Law 16C1].
In the actual case, any information inferred from third hand's stated desire to accept the IB is UI to his partner [Laws 16 and 16A1].