Room at a mark - 3 boats

C, at the point the first boat was overlapped (so B with
A) the rules start to apply and because C has overlap on
B he also has overlap on A, and rule 18.2 c states:

(c) When a boat is required to give mark-room by rule
18.2(b), she shall continue to do so even if later an
overlap is broken or a new overlap begins.

So the fact that B was no longer overlapped with A when
they eventually got to the mark does not take away the
fact that A should be giving room to both B and C to
round the mark.

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http://game.finckh.net/indexe.htm

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3 boats, approaching leeward mark on a run / very broad reach. The course is to luff around the mark onto a close-hauled course.

A - Outside boat, in the lead.

B - Inside A / windward of A, with an overlap of about 1/4 boat length at 3-boat lengths.

C - Inside B / windward of B, with an overlap of about 1/4 boat length at 3-boat lengths. NO overlap on A.

C calls for room (loudly and clearly). B calls for room. A responds "no water" directed at C.

Within the circle, B drops back, C moves forward. So at the mark: A is outside boat, C is alongside and windward / inside boat. A continues to say "No Water" to C. C continues to say "Water [please]".

Who was in the right?