I was sort of facing a similar decision -- not exactly the same, but close -- and I eventually settled on option 2 because:
a.) option 1 is really difficult. What are you going to do to improve your application besides the GREs? GREs are a realtively small piece of the application. You can try to make your SOP and letters better, but they are ultimately pretty subjective and you won't be able to quantitatively measure whether that has made your application any better. Your GPA isn't going to change between now and then so the only concretely measurable difference will be your GRE scores which, alone, probably won't be enough to swing you from second tier applicant to first tier applicant. IMHO, the best way to improve an application is to add more experience.
b.) option 3 is tempting. You get to start your PhD now and you get to be comfortable for a while without worrying that you're going to have to pay all this back later. But you can't take option 3 as an isolated situation. You have to compare it to the alternative which is option 2.
c.) comparison. what matters most here is how strong of a resume you will need when you come out. Obviously, the stronger the better, so the "safe" option is option 2 (go to prestigious MA with the understanding that it will significantly improve your chances of prestigious PhD). If your field is small and oversaturated (like mine), you put a lot at risk by going to an average or mediocre program. On the plus side, minimal loans to pay back, on the other hand, your job prospects will be limited. You also have to investigate what your expected salary would be once you graduated. In my field I can expect between 70K and 115K as a tenured professor. For me, that is worth the exhorbitant cost of an NYU MA, especially if it gets me into the NYU, Columbia, Northwestern or UCSD PhD, since those schools will undoubtedly correspond with at least a small bump in prospects/salary.
This is how I looked at the decision. Hope it helps.
TLDR: Think about risk v. reward and return on investment. Try to look at least 10 years down the road for each option. Imagine best & worst case scenario.
[ETA:] Alternative way to beef up app: publishing or presenting. difficult outside of academia, but if you think you can then option 1 might be worth reconsidering.