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 ... ?
You can use either the present perfect continous or simple with "live" and "work."
Julia has "been living"/"lived" here for a long time.