I say it like the first option...
When I don't know how to say words (and I can't find sound bites for them on the internet!), I pronounce them as if they were French. When I was in Nashville last year, visiting friends I made on another website, they kept cracking up because I always mis-pronounced their nicks - they all sounded French and funny to them.
(like "dido", which I say "deedo" since "i" is "ee" in French... eh... never occured to me that I was wrong. LOL)