I'm not sure if my idea is the same as your option #2, but here goes:
Time does exist as not everything happens at once but in sequence, but it only exists as a measurement of change. There is no timeline on which we move.
Other times like 'past' and 'future' do not exist, ever. The only existince is the present.
What we consider the past, is just a memory and is fixed (though our understanding of it may change), the future is 'open'.
Timetravel is not possible because there is no time dimension in which we can move.
'Free will' can have different implementations in the above notion of time, but personally I think it does not exist either. While people do make choices, I think those choices are based completely on a person's current state + environmental influences. That 'state' and 'influence' are purely physical things: state is the way the neurons in my brain are arranged, connected. Influences are the photons of light coming from my computer screen, temperature in the room, etc.
Only those two facts determine this post....
Kind of depressing if you really think it through so I won't
