Option 1
Your definition of Welsh being born in Wales is wrong.
I have lived outside of Wales for 37 years. My two sons were born as I and their Mum at St. Davids Hospital.
But have spent nearly all of their life in England.
Had they been born after we left Wales they would be no less 'Welsh'.
My grandsons who were born in England also know themselves to be Welsh and support CCFC, Wales AFC, WRU etc. they wear the shirt as did their dad.
So Welsh but born elsewhere.
If as a result of that they have a dual opportunity to play for two teams then I would love it to be Wales and I feel sure they would too.