You would choose option 3, real estate property. Because the improvements were made to your whole house, they will be depreciated in the same manner and for the same amount of time as your house.
Also, be sure that you are entering these improvements through the Home Office section of your Schedule C instead of the Assets section. That way the home office percentage of use will be applied properly and you will most likely see a different set of choices to make, including a question about whether any improvements were made during the year.
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