Hey there, Carmen :)
When aiming to type properly, you should never look at the keys to maintain efficiency and learn how to type faster. That eliminates the first option. Next, with typing and with anything else, sitting up straight and not slouching/curving your spine is key. Posture allows you to stay focused and get things done. Additionally, aiming to make no mistakes is something you shouldn't do. We're all humans, everybody make mistakes. If you aim for perfection, you won't be able to do your best and learn from your mistakes because that's what their for. This next one is based on preference, but the proper way to do it is really to not relax your fingers, but to keep them up on the home row. Lastly, keeping your hands above your elbows while typing would really make you type slower, unless your desk is elevated.
Hope this helps!