Which of the following is the most appropriate treatment option for a 34-year-old G2P2 with biopsy-proven vulvar intraepithelial neoplasia, grade 2 (VIN 2) and multiple warty-type lesions on the labia?
1) Trichloroacetic acid (TCA)
2) Skinning vulvectomy
3) Observation and expectant management
4) CO₂ laser ablation of the lesions
5) Smoking cessation