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Do I have to achieve Option 1 if I want to pursue Option 2?

No, Option 1 and Option 2 are separate. You can pursue either option without earning the other, or both if you like. Achieving both options is worth 2 points total. To earn exemplary performance, you must earn Option 1 and earn Option 2 and incorporate an additional Option 2 strategy. 

Question: 

Do I have to achieve Option 1 if I want to pursue Option 2?