Which is the best option for question 2
Much better. The choice of which is best is clear, and the text provides a straightforward rationale...the decision hinges on whether it's a derivative work.
I made a few wording changes to strengthen the decision point as to whether or not it's a derivative work, and a few others for consistency.
Thanks. I have another quiz question for which I'm unsure about how to nuance the opening definitive phrase...for case study question 1. I will post a discussion item.