The diagram you show has only two options for sailboats (and the diagram at the course site, from "RulesMaster", shows the same two options). I will do something about that to correct things at the course site.
There are four options for sailboats under 7m; see the diagram from the Safe Boating Guide:
Sailboats longer than 7m but less than 20m can use only option 1, 2, or 3.. And sailboats greater than 20m can use only option 1 or 2.
The text at the course site is correct, although the diagram is incomplete. And the ultimate reference is the text as it appears in Rule 25 of the COLREGS.
BTW, most sailboats I have encountered sailing at night (not under power) have used option 1 or 4. Those using option 4 were dinghy sailboats that got caught out after dark and used a flashlight to show their position as they paddled home. Option 2 seems to be rarely used by sailboats in Canadian waters.