I think, you should go for the crate option (2), and then make sure the cats can see eachother. Even if they don't get along and can't touch (fight?), they can still find comfort in the fact they have eachother.

I had major renovations done here 2 years ago: New windows (the entire frame was taken out of the wall) and new ventilation in the kitchen and bathroom. The whole thing lasted about a week.

It was messy and it was noisy, but the cats adapted, and handled it, surprisingly well (they were only in their carriers while the window frames were out). They just stayed clear of whereever the workmen were currently working, and went about their business as usual.

I of course made sure their food and water were close by them, in the area where they'd chosen to stay, while this was going on so they weren't forced to have to go near the mess or the strangers if they didn't want to.