I do have concerns about 'send them to China', since I think that that would be another display zoo with no qualms about continuing exploitation.

I don't like option three, and the reports I've seen (Guardian but also CBC etc) suggest that rewilding is off the table. I'd be ok with "the people of Canada will take care of the whales, but your business is your problem". I'd be ok with proving this point even if someone claims that the existing business could do it cheaper. A separate sanctuary would make clear that 'we care about the animals, but not your business plan as it relates to the public purse', to establish a policy.

If it is really the case that option 1 (china) is considered ongoing torture, and option three is unaffordable/unimplementable, then I guess that option 2 (euthanizing) is a front runner.