I'd go with 2. Give him a rather knotty handshake.

You motion over and give the huge black wolf a few good sniffs, before your hands go to work. You inhale the aroma and start to wonder what being a wolf's lover would mean. He's in tune with your every move and before too long, your head is going south, the lupine musk overwhelming your senses. You cup his member repeatedly, show him your breasts, and lick your lips in desire.

"If you want to taste, I'll show you the way home and give you something real nice," he says. Your hands are almost ready to send Big Bad to the Big O but you are curious to see what his offer is.
You've seen the guys in town and different species aside, this wolf is handsome and muscular.

1. He's a lucky guy as it is, give him the hand job and leave the forest as is.

2. Take the offer and really make his day

Yeah, I probably should have mentioned that the reader character is a single female villager, looking to get home before nightfall

I'm actually seeing if I can write erotic fiction

Yeah, you've got a point there. He is nocturnal, sleeps outside on a hot day, and is feared by the humans- but he secretly wants to marry a human woman.

Yeah, I'll bet you can tell a pretty sexually frustrated guy is writing this.

Sure.

As his knot gets larger and his cock more engorged, you decide to finish the wolf off with the blow job. Taking off his briefs fully reveals a magnificent eight inches of pink fleshy goodness with a bulb on the end. As the tip makes contact with your mouth, he's on the verge of letting go. Then, you start sucking while your fingers go to town on his scrote. The wolf urges you to give him more pleasure as you continue to worship the pink member. You want him to let loose and you ramp up the intensity. Your efforts finally pay off as your fellatio causes him to cum in seven or eight streamers, this ravenous beast is now an exhausted lover passed out on the ground.

" Something tells me that you want a lover. With the kind of sex you can give, we should get married someday" You know that the village will not approve and you could lose everything as he guides you back, now fully clothed to the village. You've got some time to decide and more dates to look forward to but this will be tough