#1 will look horrible, IMO.
#2 will be a lot of labor, but is probably the best looking solution.
#3 might be almost as cheap as #2 if you change to a cheaper material than wrought iron.
I’d be inclined to get bids on #2 at least and see what that looked like. Putting another baluster in between the existing ones is a grind, clean, weld, grind, prime, paint operation. It’s going to be a lot of labor and for a qualified welder, a fair bit of expense. It’s also probably the best looking, lowest long-term maintenance, and safest option.