I saw the Dropdown UI that Alex Penny did this morning and was inspired to rework it a little bit. I learnt about a few features in Photoshop I never knew of while working on this. http://goo.gl/dHWkn
Option 2 is in the :hover state.
PSD is attached if anyone wanted to check it out.
EDIT: Updated the PSD to address the kerning issue between the O and the p in word 'Option'.
L or F like
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