What are the rules for lateral water hazard in golf?

If a ball is struck into a lateral water hazard the options are:

1. Replay the shot

2. drop two clubs from the point that the ball entered the hazard no closer to the hole.

3. Drop a ball two club lengths from the hazard on the opposite side of the hazard the same distance away.

4. Take the ball as far back keeping the line that the ball crossed the hazard and the pin.