I agree with Goche.
I see my family members over and over again choose option 2. Then their friends, invariably, find out the secret. So the friends don't tell them that they know the secret. Instead, they do little acts of revenge. My relatives, in turn, don't know why they're being hurt like this (they don't know the friends are angry and taking revenge) so they get offended and feign everything's fine but do a few little acts of revenge themselves too. And so the friendships end up being phony and only superficially caring. Then, after some years, they whine and wonder why the relationship has turned so cold and uncaring. But forever, they still think their little secrets were never discovered. Disgusting (if you ask my opinion). This is what they call being civilized, and my honesty is what they call blunt, weird, antisocial. Social skills is sh*****g on everyone and covering it with phoniness.
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So-called white lies are like fake jewelry. Adorn yourself with them if you must, but expect to look cheap to a connoisseur.