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I would guess that #1 would be most efficient if you get over 1.3 MPG better on that trip, then that means that you are saving fuel.
For instance:
Drive 3 miles all city and get 25 MPG vs driving 10 miles highway getting 35 MPG. The highway will use less gas even though it seems like it would use more. If the 3 miles returned 29 MPG, then you will be using less gas driving through the city.
Correct me if I am wrong, but I believe this is how it should work and is how I've been calculating my drives.
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