It's been several years since I worked on a Dodge with a Cummins (I worked at a Cummins dealer in the mid/late 90's), so bear with me. A '96 Dodge has an aluminum radiator, right?
If so, then any of the listed options will work fine. OAT and NOAT coolants don't fare well with brass/copper/solder.
If you run low-silicate heavy duty antifreeze (like the Texaco stuff), then you'll want to get some test strips from the local Cummins dealer and test the additive level at every oil change. They'll sell you a bottle of DCA (or SCA, or PenCool, depending on where you buy it) to add if the additive level tests low. You can get away with running this antifreeze for quite a few years (5 or so) if you keep the additive levels up. Or just change it every two years and don't bother with the test strips.
If you don't change the coolant often enough and/or let the additive level get low, then you're risking cavitation, corrosion, crud, gasket erosion, and possibly overheating due to the aforementioned problems (not neccesarily due to the coolant's heat-transfer ability). It's well worth the time and money to keep the coolant fresh.
I've worked on more Cummins engines, including B-series, than I could possibly remember- and I've only seen one that had apparent cylinder cavitation (though it could've been a casting flaw, too). Cavitation isn't a big concern on these engines, but there are plenty of other reasons to keep the cooling system in good condition. It'll save you money in the long run.
If it was my engine, then I'd be using either option 1 or option 2. But that's just personal preference. You might look and see what the owner's manual reccomends. I'd be interested to know.