Encyclopedia of Mormonism, pg. 15; “Latter-day scriptures attest that Adam is a son of God, that his physical body was created by the Gods in their own image and placed in the Garden of Eden (Moses 6:9, 22; Abr. 5:7-11; TPJS, p. 345-53; cf. 2 Ne. 2:14-19).”
Genesis 1:26 “And God said, Let us make man in our image, after our likeness: and let them have dominion over the fish of the sea, and over the fowl of the air, and over the cattle, and over all the earth, and over every creeping thing that creepeth upon the earth.”
Mormons call their heavenly father by the name of Elohim. They do not believe in the Trinity so they can’t believe in the fullness or deity of God. They can’t believe that their Elohim is the explanation #2. This leaves the Mormon with only one other option of their Elohim. Pagan gods. Their explanation in the Encyclopedia of Mormonism confirms this.