I had a difficult time with this. I am so aggressive in the sit n goes that my first instinct was to push all in. But, on the bubble, in this situation I guess the correct move is to fold. After all third place profit is better than 4th place "play to win" lol

Pocket can easily be beaten by a higher pair. I wouldn't take the risk to push it all-in, because if you lose this one you don't have any price. Just wait until you with the 3 of you and then take these risks.
Just Fold and be patient.

Between the two options given, this is an easy fold in this situation with the BB on life support.
The other option that was not mentioned in the poll is to flat call if you think that the BB will come along for the ride with 1/3 of his chips in the pot. If the BB calls, you can hope the big stack is smart enough to check down in this situation. If the BB folds, you can push on the flop. With 1200 chips left at that point, you still have a small amount of fold equity, and the big stack was most likely stealing with crap anyway.

all in

This kinda situation comes up in almost every sit-n-go tourny. The key here is the BB. If you call the BUTTON's T$1200 will the BB call also. If he has any kind of hand he will probably call now your POCKET TENS are sure to lose to either the BB or the BUTTON. Now if you push ALL-IN the BB should fold knowing that the BUTTON is pot commited with you and will definately call the remainder of your raise. Hoping that you get knocked out and he skates into 3rd. So I see no benifit to calling the BUTTON's raise. Now 3rd place is nothing to go home and celebrate. So if I was wanting to win the tourny as my goal and not just place raising ALL-IN would be my choice in the scenerio. Winning this pot would put you in a better chip position and would almost secure 2nd place. This is a question that every poker player should know before buying into any tourny. To many times I was in 1st or 2nd and just waited for the low guy to get knocked out only for them to double or triple up later and end up knocking me out. So I say ALL-IN and Good Luck!