Thanks Batman for your replies
I have now had confirmation from my TA that the cruise is cancelled
They forwarded information from MSC with the same 3 options you received
We went for Option 2, and have asked to transfer our booking to the same cruise itinerary, but on the MSC World Europa, departing in Feb 2023.
I'm concerned about the length of time it will take to hear back from them now, as we need to have confirmation of the new booking before rearrange our flights.
I have told the TA that we'll be claiming the costs of transferring the flights from MSC as 'out of pocket expenses'.
I'm going to email MSC direct, using the 2 email addresses you provided (thank you!)