IMO #3. They'll moan for a bit. Continue firing rockets. A couple weeks of this; Iran will claim that Iran won, Israel will claim Israel won. There won't be negotiations or concessions. They'll continue trying to develop nukes, but these past two weeks has set them back years. Things go quiet. In ten years we'll do this all over again.

The thing people seem to not recognize is: There's basically three countries on the planet capable of actually waging war in the 21st century (US, and Russia/China barely). Every other country is just a proxy for one of these three; their domestic capabilities look more like "throwing a tantrum" than actual war. Israel can't wage war without the US. Iran can't wage war without China/Russia. Currently, the superpower contribution to this fight is just dropping some bombs and diverting a few crates of AK-47s.

There's zero capability for long-term war here. But, there's also too much face-saving for negotiations or concessions to happen. So, the fire mostly quenches into embers; like the middle east has always been.