Good morning,
There were a limited number of these on the UP. It might be interesting to see how they set those up in real life.
#2 might make some sense if there were also ready tracks. As it is, the point of three inspection pits is to inspect LOTS of incoming engines. THEN what do you do? You can't work on them all here, so they mostly get sent back out. RIGHT AWAY, mostly, since there's not much place to store them.
I'll go with #1, because it does provide a place for outgoing engines. I think I would add another inspection pit to the top of the three ready tracks, so I could use it dual-purpose.
Wash racks are nice, but the terminal is pretty crowded. I don't think they'd have them, because of that.
I think you need some outbound storage in this setup.
Ed