I had better grades than CCDE at AS (I had BBBB with a B in an A level), but I had to resit a lot because I needed 2 As to get into uni.
Over the second year I resat 3 Maths exams, 2 theoretical physics exams, the AS practical physics exam, and did exams in music and AS further maths. I had 6 exams in January, and 9 in May/June. I ended up with ABBC (ABC in the subjects I'd done in the second year, as I'd done the other B early) which isn't what you need, but I didn't revise over Christmas for the January exams which set me back, and started revising late for the May/June exams. I only just missed the A in physics, and I only missed it because I got a D in the practical, just because it was 'one of those days'.
My point is, option 1, but make sure you plan properly and work for it. You can still apply to uni even with the dodgy AS grades, make sure you have decent predicted ones, if you don't get in then take the year out.