I think FHA is out. Option 2:
How many years will you have PMI at this rate?
N
N x $169 x 12 = X dollars
But after N years, your monthly payment goes back to 2159 for the rest (30 – N) years. While the option 3, it stays $2190 for the 30 years. $30 is not that much of a difference, but it can add up over years…. See after how many years you’d have spent the same amount on both option 2 and 3, Y > N.