Your final option is correct. See the rule after the turn order step, which makes it absolutely clear (underlined below):
6.4 Turns A and B
Each Weekly Cycle consists of two turns—A and B. Each turn consists of the First Player conducting Movement and Combat, followed by the Second Player conducting Movement and Combat.
When Turn A ends, move the Turn Marker to B and play the B turn. The player who was 1st in the A turn is also 1st in the B turn.