How should I end this friendship?

I'm contemplating a similar thing. Opt 2 is tempting, but I think it would end up being the hardest cause it'll end up being difficult avoiding her. I think you'd eventually run into the same problem with opt 3. I think you know opt 1 is the best in the long run. It's the most beneficial for her, too, because it's the only thing that would allow her to see the consequences of her actions. I don't envy you. Good luck :)