Option 1, definitely. In fact, I'm going to make that one a house rule in my campaign. They should have included rules for balancing existing PCs who acquire templates in the Forgotten Realms setting, since they have included a number of templates that PCs could potentially acquire in the setting book, Magic of Faerun, and Monsters of Faerun: Chosen of Mystra, curst, the Magister, revenant, spectral mage, and even lich (since FR liches don't have to be evil, a PC lich is very much a possibility even in games where the DM won't allow evil characters).