Option 3, and none else. There were certainly better places to put them, however.
Name three.
Not that I (or anyone else) takes it seriously, but Josef Stalin had a suggestion:
As for Israel's "right to exist," I don't see how it's any different than asking why Spain has a right to exist, or China has a right to exist, or Saudi Arabia has a right to exist. This might have been a valid debate in 1947, but it certainly isn't now.
I don't necessarily think that an ethno-religious-based state is a
good thing, and I'm not really fond of nationalism, but we don't live in an ideal world, so the one-state Israel/Palestine solution is completely unworkable (sadly).