Honestly, I'd rather the first but we all know the second is more likely.
Let's be honest here, having Paulo stand against the person he loves is some good character development from someone who has yet to even come close to that all comic. I've always said that for Paulucy to work it has to crumble. If Paulo gets with Lucy it'd be prime time for Paulo to realize that he doesn't want Lucy because of who she is or because he found out she told Mike to go eat a dick hmmmmm?
and the result would be a heart broken Lucy. Paulo calls Lucy out, he developes as a person because of this, Lucy realizes how shit she is right now and becomes determined to better herself, it's a win win for both of them.
The only thing we need is a brain for Taeshi and then this might actually work.