I haven't read the transcript, if placed in a similar situation I would more than likely if i was to have broken off the approach by the student ( I am not saying I would or not I wasn't there) I would have sent them around and asked them to turn as soon as able to the north or south, using the words "when safe"" or "when able to do so" either one of them. That of course may not have helped in this scenario as we are talking about an extremely inexperienced young boy who may have blindly followed ATC instructions rather than sorting his aircraft out first.
We cannot unfortunately know the level of experience unless someone tells us, we can hazard a guess and the way he handled the backtrack instruction would have sent red warning lights flashing before my eyes. When I suggested again on another forum that perhaps a local instruction advising when someone is inexperienced is passed with the book out instructions I was told I was nanny state by PPLs so I guess it is very hard to win.