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It's a bit of a mix of option one and two since I hardly ever play as a character that is totally the opposite of myself. I do however try to stick to the way a character would approach a situation even if it means a disadvantage in the game.

it's a mix of option 2 and 3
I try to stay in character but also want good rewards.

I end up playing how I think the best outcomes could be as much as I could. However for example in the recent telltale game I played guardians of the galaxy, when I know how the outcome should be and I have to relive the memory I will choose how its suppose to go. I wont go eh lets be nice/evil and change how its suppose to be. So it really depends on if I know how it should be played if I will change my way from just being good. Even though for alot of games being evil rewards better stuff

Nice question!
Generally even though i try to push myself to make choices that represents me because i really want to feel "role playing". But often end up to evolve around character. Sadly, popular approach being not gray offers more rewards and presents better endings. And it becomes bigger factor for me when playing. I am not sure how to create better roleplaying experience but i hope RPG's will evolve in right direction.
By the way, i am playing The Witcher as a racist human-fanboy right now. But that's because i played 2 and 3 as non-human sympathiser which felt more natural. And i wanna play them again with different experiences so i am going with this dirty feel :D

1 and 2, though that depends if it's a given character or an own created one. 3 regarding endings or different story parts like in Witcher 2, but not for item rewards.

I always try to pick the option that represents my character's behavior and desires. If such option isn't available for whatever reason, I'll go with the one that gives the best rewards or lets me skip a fight (I enjoy the "talking" aspect of these games much more than the combat aspect).

I stick to my character's background and personality.
I always try to roleplay the hell out of every game, even the ones in which is less important ( for example, in Skyrim : as my rogue grew fond of Serana, I decided to give up Molag Bal quest entirely, because of what he did to her).

Solid idea for a thread!

Personally, I pick options that I would when playing for the first time. I like when a character is more of an extension of me because making up a character for a game feels like work to me. I've done it before, but usually for most games, it's hard to keep track of everything. You'll actually start thinking each time what would make sense for the character because I don't want it to be inconsistent. I'm not that great of a writer, so I wouldn't be able to do it. Sure, it's easy to be a "I kill good guys and I'm allied to the bad guys", but that's not creating a character, that's just an extreme archetype. What I'm talking of are characters that are actual people with real backstories and real events that have happened to them that would change what they do based on those events. I doubt many can do it. I'm surprised that so many actually can do it as have answered the poll. Good on them. I need that type of skill :D

For me it really depends on the game, sometimes I go for best reward but a lot of times I try to answer to how I would, at least for my first play through, if I would play multiple times, I change my answers the 2nd time.

For me, it depends on whether the RPG is a video game or a tabletop game.
Tabletop: I always go with what the character would do, that implies the consequences. Maybe the character you're playing doesn't usually care for consequences, or maybe he does.
Video game: Unless it's a CRPG, I go with what's best concerning character development and try not to shoot myself on the foot

I don't get why most people chose the first answer. If I'm playing a rogue in a game, I'll let the character decide like a rogue, not what I personally would do in that situation. I'm obviously not a rogue in real life, I'm just playing the ROLE of a rogue, it's called ROLEplaying after all xD

I usually pick a personality for my character, and stick to it (first time it's usually just go after my own ideas and goals)

When I would first play an RPG, I usually create a character that I think I would be in that world and basically role play as myself (or as I see myself, which isn't really me). I would go back and re-play it later using an alternate character that is usually the opposite of me and I always have more fun when I play as an alternate character. Lately I've been skipping being me and playing first as my alternate character.

Rather than re-play it and just pick different options and do things different just because, I try to come up with a personality that would do those things. It doesn't always work out how I expect as that character develops though. To help me "become that character" when I'm playing, I try to come up with a personal history for my character. How and where were they raised, what was their family like (if they had any), and come up with a few events in their life that helped make them the way they are. I generally start with the same basic personality, but it's never the exact same as I change it to fit it into the world of the RPG I'm playing.

RPG is a kind of game, not only a performance art. I think players have their freedom to choice when the character they played represents themselves or itself.
Also there are some RPGs in which you have to make some specific choices otherwise you will miss some side quests or useful items.
So I can't give out a concrete answer, characters in game are similar to humans in real life, they are not invariable.

Well... option 3 I suppose.

I'm not fond of making the choices I would do irl - what's the point of the game being roleplaying if you essentially play as yourself?
Predefining a certain personality is definitely good for tabletop RPGs but doesn't always work in CRPGs because there's often limitation of choices. In tabletop games your master can adjust to whatever choice you want to make which isn't possible in a videogame.

So usually I just make a very basic outlines of a character and then shape them through choices, choosing whatever I find most fitting or rewarding in a specific situation.

I'm going to assume that you're talking about games where you play a single main character, like Dragon Age or KOTOR or Mass Effect or The Witcher (or even Life is Strange and Telltale's games).

In such games that let me role play as a character, I try to do just that and role play as the character. As such, I make choices that correspond to the character I'm playing as. It's not necessarily a conscious decision, as I try to embody the character and become the character while I'm playing, but occasionally I am cognizant of making a choice that I feel in my head to be the wrong one because it's what my character would do.

That said, while I play characters that are different from myself, there's a limit to how far I can go. I don't play mean or evil characters because it's such a disconnect from who I am as a person that I have a hard time doing so and don't enjoy the process. I remember in GTA 3 I slept with a prostitute to regain my health and then beat her up with a baseball bat to regain my money (because my friends said that's what you do), and I felt awful afterwards. Even though it was one fictional character beating up another, I felt responsible because I was in control, and the cognitive dissonance too uncomfortable. I never did that again.

Good question and nice giveaways to boot so I feel I have to provide an answer to your question. My answer would be a mixture of option 2 and 3 as long as option 3 didn't completely go against my character's core values.

i try to play characters as it would be me ingame, that's why i never ran an evil playthrough.
i had a hard time playing tyranny... -_-

I sometimes regret,since usually choosing these options reward less, but mostly chose whatever that goes with my moral

mostly I reflect how I would be. But if I know certain choices will open up a side quest or extra adventure path, there's a very good chance I'll make that choice. From time to time, I'll also make the choice I think the game wants me to make (and yes, I often end up regretting that)
for example, while I mostly played Dragon's Age: Origins the way I wanted to, I did ahem fudge the romance stuff, just to see what happens. when did that in Mass Effect, I screwed up, and ruined the relationship I wanted to be in, which in retrospect is a good lesson not to do that

If I'm completely honest, there are times I'll also make a choice because I know it'll give a better reward.

I play as though I am the character the first time around, so I choose options that I would do at the time. Sometimes, that has a negative outcome... being good doesn't always present the best rewards, but it's still a lot of fun. On the second playthrough, I'll choose more strategic options.

I like to get into my character, which isn't necessarily the same type of person that I am.

For me it depends on the game.
On Mass Effect I played Paragon, didn't like the xenophobic Renegade character.
My last char on Dragon Age was a mage, also done good deeds, choosing the best outcome.
On Fallout & Elder Scrolls I play a bit neutral, if the reward is better if I'm evil, I will do it.
On Overlord I play domination instead of destruction.

For GTA, I play nice, not killing needlessly.
For Saints Row I go crazy, better be outta my way. =D

I try to make same moral decisions in RPG games as in real life. For example Fallout 4 where you can persuade people to give you more bottlecaps for quests, but there also children who can give you quests. Boy in Diamond City asked you to clean watersupplies, he tells you that he is an orphan and is working only for himself, what cruel man should I be to ask more caps from him :( or girl who asked you to find her cat, she can only give you things that she loves and there is no option to do it only for XP.... very heartbreaking moments