Swaptions - Exercise alternative 2 and 3 the same?

CFA Level II
#1

If someone is holding a payer swaption he can exercise it in the ways listed below. My question is why would someone choose alternative 2 here? Is it not just a complicated version of alternative 3, and in the end it has the same net effect?

o 1. Exercise the swaption by paying the predetermined fixed rate.

o 2. Exercise the swaption and then enter into a swap in the market to receive fixed and pay floating.

o 3. The holder can exercise the swaption with offsetting swap netted. This could be done by entering into an offsetting swap with the same party with whom the swaption had been done.

o 4. Cash Settlement.

#2

Option 3 may not be possible if the counterparty in the original swaption is not willing to enter an offsetting swap, so the holder of the payer swaption could use Option 2 by going out into the market and entering an offsetting swap with a different counterparty. But yeah, they’re essentially the same thing.