Option 3, and none else. There were certainly better places to put them, however.
Name three.
1. Encourage them to immigrate the US mainland, let them rebuild a Jewish society here.
2. Ghyl Tarkove's idea about Central Brazil, I think Brazil would have welcomed settlers into that area, as they did encourage people to move from the coasts.
3. There's always Alaska.
You notice that I'm not advocating creating a new state, just other areas for them to move. If we were going to create a new state, which we did, Israel is the obvious choice as that is where they originate.
If option one isn't for the formation of a new state, another state within in a state, then what good does that do? Jews are welcomed to come over, and there is already a sizable amount here; I doubt they'll settle for second best over a nation of their own.
Option two and three sound like massive impositions, namely in the second, on the Brazilians, and the third, on the Jews themselves.