Golf Rules: Playing from a Yellow Hazard Stake - Options & Procedures

Question
Yesterday, I played golf with a young man who hit his drive approximately
330 yards into a pond marked with yellow hazard stakes.  He could not play
his ball because of the depth of the water.

Was his only option to go back to the tee and hit another drive ?   Thanks.  

Answer
There will be two options:
1. Tee off again which will be his third shot.
2. Draw the line between the point where ball went into the pond and tee box. If there is any dry land between tee box and pond, he can drop the ball not closer to the green. He needs to take one penalty shot.


Thanks, Dean.