Both the policies i.e. 1 and 2 are POSITIVE. Policy 2 however is more beneficial. By using first policy, we stay at our present level. Only thing is that we just tell our right level to others. Policy 2 is more beneficial because here we increase our level to make it equal to that over-estimation.
So follow that policy which is more beneficial.
But at the same time, do not take it serious before the end of exams.
Regards!