Option 2 means you are giving the children up for adoption afterwards, whereas option 1 is doing what you said. Actually it's true in a way, option 1 entails they will hear/see it so I get your reasoning.
Your choices all imply that given power, you would do many things violent and/or corrupt in the name of what you see as worth doing it, especially since option 2 is to be done without witness (for their own good of course, in your eyes at least) you think most like a tin pot dictator. This sounds like a harsh insult, but that's because you are reading it in the tone of someone who is inherently against authority. I am not saying it as an insult or loathing your character. You would likely be a somewhat fair dictator, I don't doubt that. You would, nonetheless, come down like all hell broken loose on those you deemed immoral under your regime and that trait, especially when combined with your subtle means and loathing of neutrality (4 being what least to do) result in you being overall an interventionalist, 'absolute authority' type when given the chance.