I would say option 1 based on the bits zonoma posted above.
Also I think the change to add in "altitude" and remove the "to" from flight levels was to do with two things.
One is this accident:
"Descend 2-4-0-0" was interepreted as "descend to 4-0-0" and resulted in a CFIT (plenty more to it than that but that was part of it).
The "to" was removed from flight levels to distinguish it from altitude or height, at least so I was taught.
I also have the same understanding as zonoma.
"minimum fuel" means burning diversion fuel to land at the original airport, it is not an emergency and no priority will be given (just an estimate of track miles or hold delay as appropriate).
If landing below final reserve fuel is a possibility I would expect a pan, if it is a certainty a mayday.