Regarding the question at hand, option 4 - I don't give a damn about the Confederate flag, because I am normal, and I don't regularly pay attention to what the great-great-grandfathers of people I don't know may have done.
I think too much is made of the supposedly oppressive symbolism behind the confederate flag. The reality is that slavery took place under the stars and stripes as well as the stars and bars. Should we get rid of the stars and stripes?
I also think that people that obsess over the confederate flag are wrong for two reasons. First, practically speaking, they are avoiding the reality of today's problems by focusing on symbols of the past. If they spend half the energy trying to fix today's problems as they did worrying about what happened 150 years ago, or even 50 years ago, they'd be in much better shape than they are. The "civil rights" movement is so bankrupt at this point; they are devoid of any ideas for dealing with today's problems, other than blaming other people for all their problems and obsessing on things like the confederate flag.
Second, the attack on the confederate flag is ultimately an attack on the whole legitimacy of our society. Does anybody really believe that if we appease these people by getting rid of the confederate flag, they'll actually be satisfied? The truth is that they will never be satisfied; they consider our entire society corrupt and don't really see redeeming qualities in it. Their issue is not really with the confederate flag or white southerners; it is with all of us.
I mostly agree with you, but I think it should be noted that the opponents of the Confederate flag are not the only ones who use what happened 150 years ago against other people - those who go around asserting that Lincoln was a tyrant and that the North is evil, etc., are just as guilty of this.