Option one, accept a nuclear Iran with a militarized regime. Ramifications, spread of Iranian influence and its version of “Islam” across the MENA region. This will have the region shaking in its boots including the Saudi who are ill prepared for a strong Iran tactical offensive in the region. Other GCC countries are insignificant on a larger playing field of regional politics and can easily be influenced by Iran as they already are in places such as the UAE and Qatar.
Option two, impose some sanctions and leave it at that. Ramifications, sanctions will lose their teeth over time and the US will look like a “has been” superpower with diminishing regional influence thus leaving the door wide open for Iran and its allies to resume full dominance in the MENA region and beyond. And
Option three, impose strategic sanctions and support a unity opposition movement. Ramifications, Regime Change in which case Iran will become a democratic model in the Middle East and an active member of the global community that will work to eliminate global threat levels.
The question is now whether the Obama administration would like to tacle the fundamentalists in power today or wait until they have a nuclear warhead ready for launch.