The answer is 6) none of the above. Instead, what happens is this:

6) All 3 of your Alfred's have been KO'd, triggering themselves and Retaliation 3 times. You as the controlling player get to choose the order in which these 6 effects resolve (and you must resolve all 6 before anything else can happen). No matter the order you do this, the 3 Retaliation procs will trigger Hulk 3 times, but he won't resolve until all 6 effects have finished resolving since he did not trigger until after they did. Now you proceed to resolve the Hulk's AoE's. If the Retaliating character survives the first AoE, it will trigger on any of your Alfred Dice that managed to return and be KO'd by the first Hulk AoE. However, you wait to resolve that until the final triggered Hulk AoE resolves. As the controlling player you will once again be able to choose the order of resolution for your Retaliation damage and Alfred revives, but the order still doesn't matter and once you've finished resolving, the opposing Hulk will have triggered on each of the Retaliation pings and have another wave of AoE to throw back. At this point, your retaliation character will almost certainly have been killed already and so not be active to trigger from the Alfred KO's, ending the cycle when you resolve the KO'd Alfreds and send most of them back to the field.