Same thing happened with me at VSKP.
1. RR stands cancelled.
2. No, they will not.
3. Email to IRCTC RR team to cancel the RR and provide you full refund. In starting, they will provide you only the amount which is mentioned when you cancel the RR, but they will send a memo to concerned ZONE for the rest of the money and...
more... provide you a copy of it to track.