Firstly, I wouldn’t choose 3 do to it’s elevation and bumpy areas, a small city with a forest will be good for a flat surface and little areas with a lake.
Regardless, it’s too much elevation and hillsides if you plan on modifying it a bit more to fit the scene your going for; I would consider using reference images to give you an idea on how you want your city to look like. Take for an example ‘Atlanta’ has a city within a forest with small parts of areas of lakes altogether to incorporate those other elements and features,
(Getting feedback from other users on which terrain to choose is good and all), but instead I would focus on what specific terrain you like to develop your city with a forest area around. Overall, if you plan on choosing the 3rd option.
I would just recommend modifying it a bit more add flat surfaces to place your city on, and a forest with little ponds or even access to a lake area.