Chuck,

Despite the title the hive isn't dead - yet.

I suggest a 5th option.  Assuming the hives are together so if one has foul
brood, so will the other, I would simply unite the two by putting the bad on
top of the good separated by a sheet of newspaper with a few small
perforations in it.  The bees should unite peacably and after a week or two
you can put the boxes into a more sensible order.  The strong colony should
sort out wax moth problems.

Chris