The pressure at the pump level (either case) equal to density x height. Since the water level of a bottom feed system is always less or equal than the height of the top feeding tube, therefore bottom feeding is more economical.
option 1 is wrong you can not subtract the resistances of the 2 full cylinders to get the resistance of the hollow cylinder because the resistance of the large cylinder is equivalent to the hollow and small cylinders connected in parallel and not series. 1/Ry=1/Rh+1/Rx, which is your option 2