What happens if the stock price increases after placing a market order with insufficient funds?

Here's the scenario:

• Say I have $1000 in my brokerage account available for trade
• I want to buy stock xyz selling for $100
• I go to the order page and put 10 shares market order
• Preview page shows $1000 order amount and I submit the order
• Before the order is filled, the price is changes to $110

What happens next? I can think of 3 possibilities:

1. Fidelity cancels the order
2. The order is filled partially for 9 shares (plus fractions?)
3. The order is filled for the 10 shares but now my account is down $100 and I need to fund it

Basically, what happens if a market order costs more than available funds to trade in an account?