I would choose A. Bringing him back at lower Xp isn't going to help anything and will only detract from his enjoyment and potentially everyone else's, especially if he sees it as punishment.
The issue of "sticking with and enjoying a character" and the issue of "how much Xp do i give you" are separate, except that "shafting him" on Xp can make it just a contentious issue.
So, let him know twon things.
First, if he does bring it vack, he suffers no Xp penalty or punishment.
Second, you know that you and you think the others enjoy a stable set of characters more than back-n-forth, so the two of you need to work through the character issues and stick with one he can enjoy. Workn this through as a totally separate thing from any Xp notions.
The issue of "sticking with and enjoying a character" and the issue of "how much Xp do i give you" are separate, except that "shafting him" on Xp can make it just a contentious issue.
So, let him know twon things.
First, if he does bring it vack, he suffers no Xp penalty or punishment.
Second, you know that you and you think the others enjoy a stable set of characters more than back-n-forth, so the two of you need to work through the character issues and stick with one he can enjoy. Workn this through as a totally separate thing from any Xp notions.