Be a good example to him. Demonstrate to him good work habits and if possible show to him the incentives and rewards that I achieved from practicing professionalism at work. The advantage to this is that my fellow co-worker can have motivation at work. The disadvantage on the other hand is that he might have a wrong concept and ask the same incentives and rewards from the management despite of his sluggish performance at work.

From the given solutions, I would select the first one. I believe that with communication with the problem co-worker, he can be awaken of his problem.

I will first implement the best solution that I believe and if it doesn't work effectively, I will implement the next best solutions until I finally succeed in improving my co-worker's professionalism.
The work habit that my co-worker will demonstrate after implementing my solutions can provide me with evaluation tools to determine if my solution is effective or not. I will try to monitor his achievements that can be evidence of his improvement at work. Such can serve as factors in evaluating the outcome of my decision.