In general, options 1 and 2 offer roughly similar results and the difference is mainly who will do the work, you or someone else. A full-featured, professionally designed and built, web site of your own. The site will be located on some computer somewhere in the US but nobody accessing it will need to know that because they will reach it by the domain name you chose. The level of service varies greatly, so you should do some comparison shopping. However, if you choose to, you can make changes to your website yourself.
More storage space allows more graphics to be served.
A long-term advantage of having your own domain address is that you can move your site at any time if you don't like the service you are getting. The move involves some administrative work but users will still access your site by that same name and will never even know that you moved. A full-featured site designed and maintained by you. The cost will be significantly lower. Typically, there will be some initial cost cost for setting things up and the monthly fee for the site.