Choices 1 and 2 are grammatically correct.  Depending on the context, one of them will be more appropriate.  Choice 3 is ungrammatical.

The present simple usually changes to the present perfect simple and the present continous usually changes to the present perfect continous.  Here are some examples:

- I paint cars at the factory.  I have painted cars at the factory for five years.

- I am painting my house.  I have been painting my house for two days.

English Grammar in Use 4th edition by Raymond Murphy is excellent. The paper copy is reasonably priced and there is a PDF on the net.

Unit 11C - How long have you ... ?

[excerpt] 

You can use either the present perfect continous or simple with "live" and "work."

Julia has "been living"/"lived" here for a long time.