This is kind of confusing but I would choose the first one
Separate
The sentence uses the word distinctive in the context "three distinct ways". Then the excerpt lists the three ways the 10K is special. Seeing that each of those ways are separate and different it is clear that "distinct" means "separate" in this context.
Answer:No, college athletes should not be payed to play.
Explanation: They shouldn’t be payed to play because they save so much money from scholarships.