I believe that your answer is the first option due to how late the crying is, and unlike in "The Tell-Tale Heart" where the heart is constant and represents the slow descent of madness, the cry of the cat only appears at the end.
The portion of the story where it shows the speaker's madness is actually his looking for and finding similarities in the second cat and wishing to kill it.
Hope this was helpful.
I did not touch a hair on his head.
"Yet every one of these disasters has actually happened somewhere, and many real communities have already suffered a substantial number of them. A grim specter has crept upon us almost unnoticed, and this imagined
tragedy may easily become a stark reality we all shall know."
Answer: In Tokyo im with my ghouls