CRT's Editing
Maglor,
The best way to answer your question is to refer you to the History of Middle-earth, especially Volumes X and XI, which contain Tolkien's latest (post-Lord of the Rings) versions of the First Age material.
In general, your Option 2 is essentially correct: the text Christopher published in 1977 was 'assembled,' not written, by him: the words are all JRRT's (well, about 96% aside from half of one chapter), 'selected and arranged' from the Professor's mountain of disparate manuscripts.
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