Without question, #1 or #2. SoW should be pronounced the way "sow" is pronounced. Generally, when acronyms spell out a common word, it is pronounced like that word. The entire point of an acronym is to abbreviate a longer phrase or name into a shorter actual word or letters. As such, it would defy logic to pronounce an acronym differently than how it is spelled when the acronym in question is a well-known, pronounceable word and not merely unpronounceable letters (such as AFK, BRB, etc.).
In other words, ess oh dubya is silly. Oh, and I prefer #2, personally.
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