I like those two choices as well. I can think of others as well. Such as getting captured, and get beheaded as well as whoever survives, or maybe he escapes but he came across a dragon.... So many choices. My favorite is the execution and the death at the fight.
If you choose death in the fight, you'll have to go through the fight with Gavril before posting how it goes. A plausible scenario is this: The currently jailed bandit escapes and goes to the hide-out and tells what happened. The bandits aren't expecting anyone to follow, so when the guards and the captain attack, they have the element of surprise. In the end, the good guys kill all the bandits, but the bandits manage to kill one of the guards and badly hurt three of them. Wolfgar and the captain of the guards can have a more detailed battle, where the captain wins, but you'll need to figure out the details so you can write the story of that battle better.
Just a quick thought. "Too soon" in the RP might not be too soon in RT. If you make this an epic battle, the whole thing could take weeks, depending on how active people are and how many characters get involved.
In order to prevent that fight from taking two months in real-life, the out-come and details should be planned ahead in the OOC thread