Don’t cut them especially the rears. That can allow for more moisture and junk to get in between the layers of metal back there and it exposes bare metal you have to deal with. The only times I have cut the rear is when there has been body work and there is a lot of bondo on there that is at risk of cracking when rolling them. The rears are much easier to do because they are much stronger. So it takes more muscle but way less likely to bacon them or have paint issues (again as long as there isn’t body or paint work). The fronts are far more fragile so it is much easier to have waves or paint cracking.

for your options listed the first one is the only one that might and I stress might get away without modded fenders. Lowering an inch is still a fairly large change and especially for the fronts means a lot more potential for issues. The second option no question need all the fenders rolled and rear tabs relocated.