Friday's ethical question

So this was a discussion in a meeting I was at yesterday. I was not a participant, only and observer in said meeting.

You are the director of a police academy/training center. This academy is a para-military organization, however because you are part of a college/university/school board, so your recruits are also considered college students.

During morning flag raising ceremonies the recruits are expected to salute the flag. One of your students refuse to salute based on their religious tenets. They are not disruptive in any manner, they just refuse to salute. Here's your options:

1) Pull the students from that activity and hope that peer pressure and the need to belong changes their beliefs.

2) Throw them out of the academy (or if they are sponsored by an agency, have them fire based on a department rule stating that all employees must respect the flag)

3) Have them remain in formation during the ceremony, standing at attention and not saluting.

In this particular discussion, number three was not mentioned as an option. I was appalled. Apparently some of these people have never read the Constitution and are unaware that the student has the right to practice their religion free from persecution.