Though, currently in minority, supporters of the third option argue that other countries might soon follow the Indian path, if Washington does not take strong action against New Delhi.
However, sources said, no final decision has been taken as yet and it is very possible that a high-level intervention might be required to take a final call on resolving the issue.
The third option, friends of India-US ties in Washington argue, would derail the bilateral relationship at least for the next several years.
Khobragade has sought a one-month extension of the deadline for charging her in the visa fraud case but her plea has been opposed by the prosecution.
The US has categorically ruled out “apology” and “withdrawal” of charges against Khobragade.
