Option 3 or Option 1 for me. My character wouldn't personally have many problems since most of the characters in the game are Japanese, so I wouldn't mind option 3, but -

Pokemon as an anime is a children's show, and those tend to avoid language barriers even in a series that is highly international (such as Shaman King.)

Likewise in any video games every character is kind of molded together to speak the same language in order to save trouble. So if we were keeping it in the spirit of Pokemon, option 1 seems the likeliest.