The best choice is to fight Mugridge. However, he's even harder to beat than Jacob so you might have a hard time fighting the guy.
Skill point wise taking option no.3 is just as good as fighting Mugridge, but since you don't get any money from that one, I guess most people don't take it.
Option no.2 is, in my mind, the worst one. Sure, you still get a total of ten skill points, but since five of them are through an attribute point, they can't be freely distributed.