I voted 3, but I do think 2 would work just fine in the early phases of the game while our provinces were all located relatively close together. Given that this can be easily changed at a later date with a Rule Change if it becomes problematic, I won't have any complaints if 2 is chosen.

(Note to econ21: Be aware that the whole * marked rule system has been abolished. Rule Changes can now change any aspect of the rules at any point. Rule Changes are also now completely divorced from IC business and are passed by unweighted votes, with the GM having a veto over any Rule Change proposal before it even goes to the vote. Edicts and Amendments are now wholly IC in nature, and are considered temporary IC laws and permanent IC laws respectively. Rules can still require OOC enforcement of the unpleasant kind, which you are familiar with, but Edict and Amendments are now enforced only IC. If someone breaks an Edict or Amendment, they are perfectly free to get away with it unless the players make moves to enforce a punishment.)