Again, you want option #3 once the list of options comes up on the screen. Just don't forget to back up anything you don't wanna lose in the event that the file restore option deletes it as 'corrupted'.
You'll have to manually reset any custom wallpapers/icons you may have set up on your PS3, but that's a minor inconvenience. You also will have to reset video display options but the system brings you to a screen to do that once it restarts after the fix.