The Euthyphro Dilemma for Divine Command Theory states: Either God commands what's moral, or morality relies on God's commands, or neither is true. So, option 1 is the correct choice.
The best statement of the Euthyphro dilemma as it applies to the Divine Command Theory is choice 1:
"The Euthyphro Dilemma states that either God commands things because they are moral, things are moral because God commands them, or it is the case that neither of these things is true."
This formulation encapsulates the central dilemma posed by Euthyphro – does God's command determine what is moral, or is there an independent standard of morality that God recognizes? If God's commands are based on an external standard, morality exists independently of God.
If God's commands determine morality, then morality seems arbitrary and contingent on divine whim. The dilemma challenges the coherence of grounding morality solely in divine commands and prompts reflection on the nature of morality in relation to the divine.