Final answer:
The captain and crew decide to row into the surf near the shore until the boat sinks and then swim to land.
Step-by-step explanation:
When dawn arrives after the first night, the captain and crew decide to carry out a plan to try and reach the shore through the surf.
They reason that if they don't attempt to reach shore soon, they will be too weak to do anything for themselves after the boat swamps.
Hence, the answer is option 3: They plan to row into the surf near the shore until the boat sinks, then swim to land. The captain instructs the crew to work the boat in as far as possible and then, when the boat surely swamps, to pile out and scramble for the beach.
The captain emphasizes the importance of keeping cool and not jumping until the boat swamps for sure.