Flexible Protection Plan - some advice please

Fairwinds

My mother was sold a Flexible Protection Plan in 1988 (now with abbey life) which is a cross between a life insurance and an investment plan (I believe).
She insists she only took out the policy on the guarantee that it would pay out £10000 on her death. She has a letter from the advisor which talks about a "premium of £18.52 per month for cover lasting 12 years, after which you would then need to increase premiums to maintain the £10000. In the other case you will note that the £10000 would be sustained throughout life for a premium of £24.77 per month without adristment". ( what ever adristment means)
The fund will now only pay out about £5000 which is ever decreasing.

I have complained to the company on her behalf about mis-selling, and have had a letter back saying the policy was not suitable and offering 3 alternatives - none of which I think are particularly good - and this is where I would like some advice.

Option 1 - for the same premium they will guarantee £7300

Option 2 - payout the full £10000 if premiums are increased to £33.38

Option 3 - Refund premiumns less cost of life insurance of £4300 (she has paid 24.77 per month since june 88 = £5201 over 17.5 years.

Can someone in the know advise if this offer is fair or alternatively what should we go back with.

P.S my mother is 80 next birthday

Thanks for any assistance