Now that my thinking process has been recalibrated by SuspiciousFluke's prodding, I believe that the answer to your question is:
a) If Variation I is in effect, and the rook is touched first, then the king is touched, then the castling maneuver is completed: In this case, I believe that castling is allowed.
b) However, even if Variation I is in effect, if the player moves the rook first and releases the rook before touching the king: In this case, I don't think castling is allowed.
Does everyone agree with this interpretation?
I agree with this, yes. Also, apology of course accepted :)
The first reply the OP got to his question was correct (mine).