A Custom Google Search on your own Site is a Powerful Tool - The last option...
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The last option is probably the best for you. This will place the search results on a page in your site with your own header and footer. It holds the reader on your site. Option one keeps them on your site, but they do not get that impression since all they see is a Google page. Option two opens a new window and sends them to Google. You might lose them at that point.
Option three requires that you specify a web page for the search results, but that is easy if you specify the same page the search box is on. If you put the search input box and the search results below the search box, your page will function like Google.
On the next Adsense page you specify the color scheme for your ads, the country for the search, if you want to use Safe Search (keeps porn from coming up on the web search), and if you want to use a tracking channel. I recommend that you use channels for each different use of Adsense so you can see where your revenue is coming from.
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