I have two friends who are literally writing code for Option 2. The are working for 2 different autonomous car makers, but they have been tasked (as part of a larger team) with programming the car some split second decisions. One example I was given is ... If the car has to choose between hitting an adult or a child (based on body size) what will it do.
This led to a lot of debate ... particularly on, how much information will the car be able to determine accurately before having to choose etc etc. One of the two car makers is contemplating the idea of allowing the user to go through and choose for themselves after purchase.
This is interesting and is exactly the sort of thought-process I wanted to promote with this question. Taking the easy option of saying both children isn't always an option in real life...but people like to delude themselves into thinking that they are in control of life and the things it throws up. To some degree yes, but also no.