@Mace Windu Actions don't resolve nor are the in the queue. Retreat is a delayed effect. It is resolved, and must be, before any actions can be taken. So yes, it does get fully resolved before any action is taken. The delayed effect happens after the action it creates. It is a very strange card in that it really doesn't fit into the normal frame work of the game. So really, it is hard to say if it can over ride the second force action with an opponents action then just flat out end the round.
How this game is played doesn't always follow logical sense which makes "do what the card says" often difficult to do.