Errrr.... DS's sleepover birthday party was booked first with all his friends at your house.
You'll have arranged your weekend around it, organised it & bought stuff, DS and his friends will have been chatting about and bw looking forward to it. Their families will have made plans around this and maybe turned down other invitations.
It's a bit late for SIL to be booking FIL's birthday now, less than a week beforehand!?! FFS she & your DH have had plenty of notice FIL would be 90, to have arranged it all ages ago. Your son's had 11 birthdays before this one so surely they know his birthday yoo and possible party falls only a few days beforehand.
Of course you can't go!
You're hosting your DS's party for his friends. You can't let him, nor his friends, down, especially not just days before!
Your DH is being ridiculous to suggest you cancel it and rebook another weekend at this late stage nor that you leave his 18 y.o. sister in charge instead, leaving no parent in the house. I would be
if I went to drop off my 12 y.o. to a sleepover and only his sister was there (even if 18). Or that you casually said when we arrived to drop off "oh btw we are popping over to practically the next county for my FIL's birthday miles away & will be back 11pm ish". 
Now SIL knows you're not available, if it's crucial that you are there too OP, she can swop FIL's last minute 'Do' to Sunday evening. They're lucky you're saying DH can go and miss
his son's party. Or you DH & DC can pop over Fri or following weekend to celebrate separately with FIL.