The expansion rules cover this under the "Note" under the Master Builder Track section on page2:
Note: If the event card is revealed that allows only 2 master builders to be used next round, place only one master builder for each player into the bag, and use the track as described above.
So 1 in the bag to be drawn, 1 on the side to be placed on the track as they are drawen, and 1 to be ignored for each player.
EDIT: Sorry, forgot about the 2nd part of your question. And so given your ability to ignore the event, you would have placed 2 in the bag and played as normal. everyone else would only have had the 1 in the bag.