From what you've written, I don't see why Option 2 is a worthwhile one? TAing for an adjunct professor, while nice, has no relationship to doing your own research in grad school. Unless this adjunct happens to have published papers or connections within academia, their reputation seems to not make up for their non-tenure track status.
Another thought is to go to LOR 1 and 2 and ask them what they think. Your MA research project advisor should be pretty invested in your outcomes and therefore be willing to help you craft your application, so their input would be very useful.