The Prius will not shut off. If you think about it, you'll see why this is so: What happens if the fob battery dies and the car shuts off?. Also the fob battery life would be extremely short if it kept probing for the fob while you were driving.
What happens is that you'll be able to drive until you power off the Prius but you won't be able to start it again without the fob.
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