As someone who has worked for 20+ years in engineering, and if I were in your shoes right now, I would choose option 2.

When you are just starting off your engineering career, it is better to go deep into the technical stuff, get a good grounding / foundation before taking on managerial responsibilities. Engineering Managers are easy to find, but good technical managers are rare and hard to replace. And if you find technical work your cup of tea, you can go and become a professional engineer. Professional engineers are a rare breed and they command a premium for their services / advice.

If you are not well grounded in your knowledge, going around with a "senior" sounding title will not give you an advantage in future job interviews as your shallow grasp of technical issues can easily be exposed in interviews. Indeed, it can be a hindrance and an embarrasment. I came across a number of such candidates when interviewing for my company.

If you are young, you have time on your side. Use it to build up your knowledge. Don't be too pre-occupied with chasing that few dollars. They will come when you have what employers want.