Yep, that complicates things. To qualify for
free dining, you have to purchase at least the minimum ticket for everyone in the room -- and last year I believe that meant park-hopping and memory maker). The problem with the minimum ticket is that you won't be able to make FP+ for all days until you are onsite and add the extra days to the tickets.
There are some options, but you'll want to crunch the numbers to see which is best (and if multiple families are involved, each may want to make their own decision on finances). Option #1 is the least problematic to others, but may not be affordable if the nephews planned on someone paying for the room.
1) Re-arrange rooms so the nephews have their own room, booked for just the time they'll be with you. Can FIL stay in another room?
2) Book everyone into the room for the full time, including dining and tickets. This also means paying the extra adult fee for all nights. Plus, some tickets will have more days than needed.
3) Book only FIL into the room for the full time, including dining and tickets. Buy tickets for the nephews separately for the number of days they need. Everyone can make FP+. Add nephews to the room when FIL checks in. BUT nephews would not be on the
DDP -- this may be OK as you can share credits, but whether there would be enough to cover everyone depends on your plans for meals all week. Also, nephews won't have access to ME unless they are arriving later in the trip.
4) Book room-only, hopefully with a discount code. Purchase tickets separately and pay for meals out-of-pocket. Depending on the resort, the discount, and your dining habits, this may save money in the long run.
5) Book room + dining package (won't be free dining) for FIL, and buy everyone's tickets separately.
I realized you mention father-in-law, 2 adult nephews, and a child. Who is the 5th person? One thing about 5 in a room -- what resort are you considering? If you don't have 5 people on the reservation, they be assigned a room with max occupancy of 4. And unless it's a family suite, the values do not have any rooms to accommodate 5 guests (unless the child is under age 3). Keep in mind that adding 2 more adults to a room with 2 adults will result in double "extra adult" fees (except for suites and DVC).
I'd honestly suggest that each "family unit" plan for themselves, including the room, tickets and dining. You don't expect all 14 of you to be together all day every day. Different resorts and/or meal options may appeal to each family.