Down to suspension and tire set ups, help me choose!

I know I'm beating a dead horse but I've tried searching and I can't really find anyone with the same dilemma.

I'm down to two options with how I want to go with my suspension and tires. I'm looking to choose the one that least effects my MPG.

Option 1: Billies at 1.75 and either BFG KM2 or Toyo MT in 265/70/17.

Option 2: 3" lift (haven't decided which one at the moment) and Nitto terra grappler 285/70/17

Which one will have the greatest effect on my MPG? Is it a wash since the larger tire is an AT and the smaller is an MT?

Opinions or pics appreciated! I've googled this stuff so much I'm going to lose my mind haha

 

if mpg is a factor dont lift? you will have better mpg by staying stock. However I'd vote option 1 for least decline of mpg and option 2 for better looks, go with OME for a 3"