Hello everyone, thank you very much for your replies. Now, at least I didn't see any collectors laughing at me or use the word pedantic on me.
To wrap up the story:
Regarding the watch: "with no blemishes" is a term I would consider a dealer to use it very cautiously, but since it was being used to describe the watch, I trusted the dealer. I would like to pay extra premium to buy from a dealer because I assume the deal, as a collector himself, is responsible what he was saying, and also I can return the watch if I am not satisfied.
I did purchase another polerouter from another dealer before, and the watch is as described. The dial did come without any blemishes, as shown below:
Interestingly, I went to this same scenario before, I bought a connie, before I purchased it, I noticed that there is a big mark on the dial. I asked the seller, he double assured me the mark is on the crystal. So I purchased it, at a very high price, but it ended up with that the mark is on the dial. I returned the watch, and I paid for the return shipping, and the seller didn't complaint for a word:
The payment was done by Wise, which is essentially wire transfer. So I can only negotiate with the seller, and the seller has give me the 3 options above.
Before I purchase, I did read the T&C and there is a return policy. Before I initiated the return request, I read it again, and you can see in my first email, I even indicated that I'm willing to pay for the processing fee.
Taking a partial refund is never an option to me. I knew with this blemish and the price I paid for it, I will never like this watch, and to be honest, I don't even want to put it on my wrist at all. I want to collect this watch, not making profit from it, otherwise why I bought it from a dealer in the first place? Although I browse through ebay and other C2C websites whenever I have time, and I do purchase some of the watches for profit as long as I see a 'steal'. You know what, I have dealt with some of the members here and also meet some of the members F2F, I'm always transparent and even willing to show the price and transaction I paid for the watch.
Recently I am super busy with my work. I don't have time to argue with the seller anymore. I will go for the option 1, return the watch, pay for the return shipping, and the 500 euro processing fee. I will contact a member here kindly offered me help, ship the watch to him, so that he can help me to ship the watch back to the seller from Germany.
Option 2 seems to be a good option, but now I have no trust in this seller anymore, who knows how long will it take for him to resell the watch, if not forever. And who knows what will happen if I choose this option 2 and missed the 14-day return window.
Just looked at what he said, I can resell the watch very easily and make a profit. Ok, I will give this opportunity back to him. I just wondered, if this watch is so popular and easy to sell, why he sounded so pissed off when I want to return the watch??? He told me there were another 2 potential buyers when I was discussing with him before I pulled the trigger. If I were him, I would be more than happy to take the watch back.
Lesson learnt.