I don't think it's a migration instead its a system copy 
and yes you have to choose the option 1..
You can even refer to the below system copy guide :-
http://www.saptechies.org/sap-pdf-books-download/011000358700001299482010E343411319087473.pdf
target system: <Your Product> System Copy Target System <System Variant> Based on <Technical
Stack> .