In order:

1:This kind of thing does not come up.

2:If it did, the moral obligation is to find a third option.

3: The million would be the lesser evil, but is exceedingly unlikely to to actually die, as an identifiable group faced with the prospect of a loosing that high a number of its membership is going to exert a lot more leverage than the world at large is going to exert over a one in 3.500 chance of death.