I have voted for "other"
The reason is, that I personally prefer story characters and don't need the option for self made ones. However I don't mind if the game has the option of self defined characters. So no option fitted exactly.
By the way, the reason for my preference for story charcters is immersion. I feel much more immersed if I identify with a being, which is already part of the world, has a history and so on.
Characters like the Witcher or nameless heros in PS:T and Gothic were more immersing for me than self made characters like in Baldurs Gate or NWN 2. They are also examples that story characters are not mutually excusive withinteresting character development.
I know that for other people the immersion feeling is greater, when they can define the hair colour and the name of their character, while things like that are irrelevant for me. However, I would like it, if they could have the possibility to do that.
May be there is a possibility to achieve both:
If you game will be party based you could implement it in such a way that every character in the group has the same options with respect to gameplay mechanics (so there is no pre-defined leader ofthe group as far as game mechanics are concerned).
You could then allow to mix the group from predefined characters with a story (and the story might require that have to have one or more of these in the party), while others are freely designable. The latter could for example have the typical non-story background like being a bhaalspawn orphan from a burned down village, but having no real personal story.
With such construction one player could chose a predefined story character as the lead of the group and play through the complete game this way, while another player could do the same with a completely self definned one. The have different roles in the story but both can be chosen as leader gameplaywise.
Addition: As an example, why for me immersion is stronger with predefined story characters instead ofself defined ones: If you consider being an actor in a theatre or a movie - which possibility is more interesting: To play a character, who is exactly like yourself or to play one, which is absolutely different from you normal self? For me it is clearly the second one.