Since the 71st dropped out will the 1stFG advance in their place?
Well 12thRA would advance in their place, and 1stFG would advance as the new 2nd Place team.
Edit: On a sidenote though, its kind of BS to pull out of a tournament once your set to advance, blaming issues that haven't been handled properly but not stating which problems those are.
I myself am unaware of any issues that have come up bad enough and handled poorly enough to pull out of the tournament.