Hmmm. If it were me, I would lean toward Option 1, simply because there are too few kids in Option 2. This is purely anecdotal, obviously, but I've heard from more than one parent of GT kids who had their kids in very small schools about the troubles when you have a kid who doesn't quite fit in. The friends pair off, and you may be odd man out if you don't happen to easily make friends. Or if you're transferring, it may be hard to join a group.
Also, I like free in any situation when you don't know if it will work!
