Answer #2 is correct. You may only need to have the head gasket replaced. There are alot of varibles. Everything is dependant upon how much you overheated the engine. The least to expect is $800. The most no telling.
depending on what engine you have it can vary from $800.00 to 1200.00 dollars basic depending on location, it may also may get more complicated if their is additional damage as a result of head gasket rupture, cyc head warp, o2 sensor contamination,oil coolant contamination, crank, rod bearing damage depending on length of oil coolant intermingling,(how long you drove it with bad gasket)..a trusting garage can give you all the information you need, but will need to tear down to verify which could cost $200-400.00 to make an accurate diag...
-parts cost less than $100 +++++plus labor+++++
-I would charge $150 if "desperate" for $$$...$250,if just looking for extra cash..
$300 for shadetree -mechanic rate....$400 for "Shop-rate ...$800-1000 for dealer price..(avoid this last at all cost..unless you are independently wealthy)
on todays market of high unemployment,you should be able to have this work done
for less than $300-350 ; The head does NOT always needs to be resurfaced..add
$150 to cost...if must..I charged $90 to others when I owned machine -shop-Mill...A
decent machinist will resurface head in about an hour.