Option 1. is what Instagram seems to do and option 2. is what Twitter seems to do, though as someone who doesn't use the former and has not been suspended from the latter I am half-guessing.
Motivation in both cases is to reduce the number of permanent suspensions in situations where an offending user is willing to change, and minimize moderator workload by having to keep up with appeals through e-mail.
@Gargron From my Twitter experience you get shadow banned and can't fix it or get banned outright.