That’s because the author’s concept of “psychological continuity” is looser - “your mind’s rough configuration exists somewhere in the universe some time in the future“, which is different from how you and I define it.

Perhaps the ”strict psychological continuity” could be called “psychological+spatiotemporal continuity”, but apparently the author considers the spatiotemporal part to be a component of “strict bodily continuity” and nothing else. If you value temporal continuity independently of bodily continuity, the third question becomes a choice between “dead and soul-destroyed” or “dead but reincarnated”, which is clearly not the author’s intent.