Using Clarity card and ensuring charge is in euros

I recently got the Halifax Clarity card to buy an item from a german web site in euros. When making payment using the only option of Paypal, whereby I selected Paypal guest log in where I entered the details of my clarity card. I was then asked the following:

[FONT=Helvetica Neue, HelveticaNeue, HelveticaNeue-Light, Helvetica Neue Light, helvetica, arial, sans-serif]Pay in your currency using the PayPal conversion rate[/FONT]

• • [FONT=Helvetica Neue, HelveticaNeue, HelveticaNeue-Light, Helvetica Neue Light, helvetica, arial, sans-serif]Exchange rate: £1.0000 GBP = !!!8364;1.0822 EUR[/FONT]
  • [FONT=Helvetica Neue, HelveticaNeue, HelveticaNeue-Light, Helvetica Neue Light, helvetica, arial, sans-serif]This rate is 3.50% above the foreign exchange rate provided by PayPal's financial partners.[/FONT]
  • [FONT=Helvetica Neue, HelveticaNeue, HelveticaNeue-Light, Helvetica Neue Light, helvetica, arial, sans-serif]Amount you'll pay: £58.95 GBP[/FONT]
• [FONT=Helvetica Neue, HelveticaNeue, HelveticaNeue-Light, Helvetica Neue Light, helvetica, arial, sans-serif]Pay in the merchant's currency[/FONT]
  • [FONT=Helvetica Neue, HelveticaNeue, HelveticaNeue-Light, Helvetica Neue Light, helvetica, arial, sans-serif]Exchange rate: Your card issuer will determine the foreign exchange rate you pay. To find out the exchange rate, contact your card issuer.[/FONT]
  • [FONT=Helvetica Neue, HelveticaNeue, HelveticaNeue-Light, Helvetica Neue Light, helvetica, arial, sans-serif]Amount you'll pay: Final amount determined by your card issuer, including any applicable fees.[/FONT]

I am confused as to what is the difference between these two options and which I should select.

I didn't log in to my Paypal account as I wanted to use the Clarity card especially as I can get a £20 cashback if I make a transaction in a foreign currency by 30 Sep 2018. I am unclear as to which of the two options would ensure the charge on my Clarity card was in euros

As this is my first purchase in a foreign currency any advice would be appreciated.