Option 3 is true - Paul says it - but God still requires faith for anyone to benefit from it - Paul says that as well. Do I pretend to understand how God made that work? Nope! But it's what Paul said. A holy, just, non-lying God cannot require faith in His Son from those He did not give faith and THEN damn them for not expressing faith in His Son. Period.
You have misunderstood Paul.
You also wave off the discussion related to the decree in my post. Per the commonplace view of the Reformed, the decree encompasses the fall of man and God's provision to save some, but not everyone, so done only according to His own purposes and counsel and not any foreseen merit of man. This fallen lump of clay deserved no universal mercy. You may disagree with this view of the decree, but your argument against this common view is not sustained until you show it to be otherwise.
Further, if Christ died for
all the sins of
all men. But then why are not all saved? You answer, Because some do not believe. But is this unbelief not one of the sins for which Christ died?
If you say yes, He died for all men, then why is unbelief not covered by the blood of Jesus and all unbelievers saved? Why are the lost then being punished if option three—Christ died for
all the sins of
all men—is your choice? Apparently, his death was only a potential act of redemption, not an actual one, since all are not saved. So, in reality, you really do not mean option three, but something like "Christ died for
all the sins of
all men, but only if and only if
all men would just have faith".
I prefer to not have flattered impenitent sinners by assuring them that it is in their power, via Arminian and Romanist notions of
prevenient grace, to repent and believe, though God cannot make them do it. On the contrary, Christ did not win a
hypothetical salvation for
hypothetical believers, a mere possibility of salvation for any who might possibly believe, but
a real salvation for His own chosen people. His precious blood really does "save us all"; the intended effects of His self–offering do in fact follow, just because the Cross was what it was. Its saving power does not depend on faith being added to it; its saving power is such that faith flows from it. The Cross secured the full salvation of all for whom Christ died. "God forbid," therefore, "that I should glory, save in the Cross of our Lord Jesus Christ."
You conflate belief and faith here. All are commanded to believe. Man is not commanded to have faith, for faith is but a gift granted by God, the firstfruits of regenerative re-birth.
Why is Christ's death able to stand in the place of what a sinful man deserves? It is the gracious purpose of God. Considered in itself the death of Christ possesses the virtue to redeem all men (
intrinsic merit). Clearly, since not all believe, in God's purpose it is only designed to redeem an elect, specific number of people, that is its
extrinsic merit.
Herein this discussion are two coherent interpretations of the biblical gospel, which stand in evident opposition to each other. The difference between them is not primarily one of emphasis, but of content. One proclaims a God Who saves; the other speaks of a God Who enables man to save himself. One view presents the three great acts of the Holy Trinity for the recovering of lost mankind--election by the Father, redemption by the Son, calling by the Spirit--as directed towards the same persons, and as securing their salvation infallibly. The other view gives each act a different reference (the objects of redemption being all mankind, of calling, those who hear the gospel, and of election, those hearers who respond), and denies that any man's salvation is secured by any of them. The two theologies thus conceive the plan of salvation in quite different terms. One makes salvation depend on the work of God, the other on a work of man; one regards faith as part of God's gift of salvation, the other as man's own contribution to salvation; one gives all the glory of saving believers to God, the other divides the praise between God, Who, so to speak, built the machinery of salvation, and man, who by believing operated it.
Plainly, these differences are important, and the permanent value of the "five points," as a summary of Calvinism, is that they make clear the points at which, and the extent to which, these two conceptions are at variance.
AMR