Sweden chose (and is still choosing) option number 2.
Universities are closed, high schools are closed, elementary schools are half-empty, people that can work from home do so, a lot of employees have been furloughed, restaurants have switched to mostly take-out, bars are closed, large events are cancelled, grocery stores reserve hours in the morning for senior citizens, elder care homes don't accept visitors, travel is way down, and people generally self-isolate and self-quarantine. Field hospitals have been constructed, recently retired healthcare workers have been asked to come back to work, vodka producers have shifted to making hand sanitizer, and other companies have shifted to making PPEs, etc.
Yes, Sweden is one of the least locked down countries de jure, but it's de facto locked down pretty well. The actual difference between Sweden and other European countries is much smaller than you think.
I think it is not well locked down because their death rates are close to Italy (per capita, not per infected which are also similar but depend on testing protocol).
If you investigate the graphs then you may notice that it is a general rule that when when number of daily infected tops, it takes some time for the number of daily deaths to top.
I have not run statistical analysis yet but from eying it I would say that it is about a week or more.
From this point on the number of deaths will double or grow even higher.
For Sweden it will mean that even when the growth of daily infected stops today, the number of daily deaths will top when it is the number of deaths is around 3000 from what follows that the total number of dead will be around 6000 (assuming that the growth of daily infected stops).
Universities are closed, high schools are closed, elementary schools are half-empty, people that can work from home do so, a lot of employees have been furloughed, restaurants have switched to mostly take-out, bars are closed, large events are cancelled, grocery stores reserve hours in the morning for senior citizens, elder care homes don't accept visitors, travel is way down, and people generally self-isolate and self-quarantine. Field hospitals have been constructed, recently retired healthcare workers have been asked to come back to work, vodka producers have shifted to making hand sanitizer, and other companies have shifted to making PPEs, etc.
Yes, Sweden is one of the least locked down countries de jure, but it's de facto locked down pretty well. The actual difference between Sweden and other European countries is much smaller than you think.