Definitely #1. But you can’t ever make any reference to it looking like Big H in the game. Just make it so people say “… is that supposed to be Hitler?”
For anyone curious, the game I’m working on is kind of inspired by The Stanley Parable, and you can check it out on Steam, maybe even wishlist (it would help a lot) : <a href="">https://store.steampowered.com/app/2336120/Do_Not_Press_The_Button_To_Delete_The_Multiverse/</a>