Hi @Sonalk,
For the reading and writing of data service entities for business users, I would recommend option 2. Combining an app with data service entities would allow for business users to filter based upon certain fields of a entity and set rules for the subsequent data contained. It would also allow for these users to create entity records using data operations Create/Update upon an event from a control component in the App. Please ensure that these users have the correct permissions for read/write operations as outlined here: Managing Access.
As for licensing, any automation cloud account connected to the organization would have the ability to see and use the published the app.
Please let me know that helps!