Depends on the blade but #1 is the choice i prefer.
If there is rust i send it gently away, clean the blade with some metal polish and that is is. I like old razors, knives and tools show their high age with proud. Same goes with scales. I clean and save them if possible.

Some razors i've had have been in such bad condition that there was no choice but to clean them and put a mirror finish. With these it also easier to make and put some fancy scales.