Eternal punishment, 2. Eternal punishment is being cast out of the presence of God in torment forever. What exactly this means is debated. Universalism means that all will be saved eventually. Again the specifics are debated.
Annihilation is the idea that death is final, without eternal suffering.
It seems that if one must choose, any of the three can be supported in scripture to some degree. Dear Don, You may be aware, from other questions and answers we have posted on this topic, that we recommend the book Four Views on Hell , published by Zondervan in their Counterpoints series. Literal probably the same as your Number 1 below. Purgatorial with at least one aspect being that reality need not necessarily, in very case, be hell OR heaven, but perhaps both as purgatory might be purgation, purification, an interim period. Of course this is more Catholic than Protestant.