My understanding is that if you have multiple options like this, and one of them is unfillable, you must select the option which you can meet.
I.e. Option 3 is the only legitimate move here.
In the rule book the description of the option "DECIDE" states:
Players have the choice between 2 or more alternatives listed on the card. Alternatives that have unfulfillable requirements cannot be chosen
I have inferred this to also include OR statements.