Best Refresh Rate Settings at Max FPS

[Belphe]

Hello,

I'm using the multithread client to play DCS. Only recently I purchased a PC that can run DCS and achieve my monitor's refresh rate with all the graphical blows and whistles enabled (5120x1440 @120Hz). It's not constant and the FPS occasionally drops down to 80-90 but most of the time 120 is stable. What is considered the best way to play DCS to equally spread the workload between the CPU and GPU:

1. V-Sync ON:
FPS locks at 120 and CPU BOUND is displayed in yellow

2. V-Sync OFF / FPS limit set to 120:
FPS locks at 120 and CPU BOUND is displayed in yellow

3. V-Sync OFF / FPS limit set to 300 (max):
FPS is unlocked, even reaching values of 140 and GPU BOUND is displayed in green but a terrible screen tearing is introduced

I really hope it's not option 3...

Thanks!