Short Stay Schengen Business Visa: Cost for travelling and living

A company in Netherlands is inviting me for a face to face interview and is sponsoring my:

1. Flight Tickets
2. Hotel Accommodation
3. Travel Insurance

They have provided me with an invitation letter which says that they will pay for my flights and hotel accommodation. They have also sent me an insurance document. Now while filling up the visa form what should I answer to the question - "Cost of traveling and living during applicant's stay covered"

Option 1 --

Select "Sponsor/Host" and under the subcategory select "All expenses covered during the stay"

Option 2 --

Select "Sponsor/Host" and under the subcategory select "Other" and mention FLIGHTS, HOTEL & INSURANCE

Also, Select "by applicant himself" and under the subcategory select "Cash"

My gut feeling is to go with Option 2, but VFS website's sample form http://www.vfsglobal.com/netherlands/india/pdf/Visa_Application_Sample_Form_160217.pdf suggests going for Option 1. Any suggestions here would be greatly appreciated.