Technically the children of your uncle are entitled to the land which is given by Will to them
They obviously do not have any right over the land and house owned by your grandmother
If the children of uncle are desirous to sell the land inherited by them under the Will then might as well your father can mull to buy it instead of inviting a dispute by denying the right of the children
Practically the children wont find buyers easily as the land is built upon and not vacant. So no buyer would be keen to take up the liability of buying a land on portion of which a house presently stands and even if any legal action is taken by any such buyer, it will take years for it to get resolved by court
So the children will ultimately turn to your father
So its advisable to pay a lump sum amount to the children and buy peace
Your father can then sell both the plots to some good developer or develop them in joint venture with such builder which will easily cover the cost of paying the uncle's children
So i suggest you take a pragmatic and practical approach rather than thinking of going legally