Mutiny targets two different creatures, both must be legal targets for mutiny. Because the Master has protection from red it is not a legal target for mutiny so it couldn't be cast. The game is backed up to before the illegal action is preformed, so the card is put back in the player's hand and lands are untapped.
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Mutiny---
Target Creature an opponent controls deals damage equal to its power to another target creature that player controls
Mutiny targets two different creatures, both must be legal targets for mutiny. Because the Master has protection from red it is not a legal target for mutiny so it couldn't be cast. The game is backed up to before the illegal action is preformed, so the card is put back in the player's hand and lands are untapped.