The first one would be my choice, but, I would use the eraser and use a big soft brush, opacity on about 20 to 30 %, and brush somewhere in the middle of the sig.
I asume you have a layer with the sharp normal picture, and the blur on top, so if you do this it might look better.
And I agree with other poeple about the text, sig isn't bad at all, but try to find a way to integrate your name in it so that it matches the entire picture.