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(See for example, the difference between the series, which is very close to a Visual Novel style of gameplay, and the DOA Xtreme series, which is the closest thing to a true Dating Sim with mass-market appeal in the US.) If the game plays out like a Choose Your Own Adventure, that's a Visual Novel.If it feels like you're playing an RPG, trying to keep track of everyone's feelings about you and giving out presents, that's a Dating Sim.
Some Sim Date games have been made into Harem anime, though the result is usually nothing special due to the removal of sex and the fact that the narrative can no longer focus on any single character.
Let's see; she's smiling, so option one should work - unless that throwaway line of dialogue back in Chapter 2 was hinting that she was actually a Tsundere and so I should choose number two..on while I check the FAQ.