As an ATCO I would expect (ii), as a pilot I would do (ii).
Reason? Why would you want to go round the hold again? If cleared for the approach then you do just that - carry out the approach, using the correct entry to get yourself inbound to the beacon.
Confusion is caused by (iii) because if you're not the only one in the hold / procedure those behind will have been issued 'EATs'. If you go around the hold again then anyone else with an EAT needs 4 minutes added to them thanks to the 'fannying around' in the hold that's been done.
If you want to do a hold when cleared for the approach then ask.
I wouldn't do (i) because, with the large turn angle required, it takes forever to get repositioned and established on the outbound leg, probably leaving insufficient time to lose the height required for the turn and be in the right position for the base turn.
As for what to say. You can call "Overhead" the beacon on joining. That tells the ATCO that he can expect your beacon outbound call in 3 minutes - a prompt that he may have to update EATs. Next call, would be "Beacon outbound".