No question about it the second one. A hole in one would be great and all but it’s not something I think about much or “really” want. If it happened ya great but a personal best round by three shots would make me feel a whole lot better and have me buzzing for a while.
Dropping in front of X would be incorrect and I know it’s not an accurate depiction of the hole, but based on the drawing there might be an area you can drop there using X as the reference point.
It might be a tiny sliver of ground but if the curve of the penalty area has a larger radius than the curve of the area that’s closer to the hole it will be there, especially if the hole is closer to the penalty area itself. Think of drawing a small circle inside a larger one; there are areas that don’t overlap near the point X where the two circles meet.
It might also help if we could see the actual hole in question.