You can actually do number 3. On Config > Keyboard select Caps as Ctrl at the modifier section, and also toggle the Caps as ESC. That will give you Ctrl on hold, and ESC on tap. :)
Regarding Bluetooth/external keyboards: The last time I tried an iOS terminal app, iOS had limitations on many key combinations, such that I couldn't effectively use Emacs with normal mappings (or Bash with default Emacs-style keyboard shortcuts). Has Apple changed this and if so, does Blink or any other app work properly in this regard? I'm not concerned with changing modifier keys, just want standard Ctrl and Option as Meta like I do in macOS.