The proper conclusion to draw from this conundrum appears to be that neither account I nor account II is correct. Since similar considerations would emerge from comparing other reasonable-looking attempts to reduce natural numbers to sets, it appears that natural numbers are not sets after all. It is clear, moreover, that a similar argument can be formulated for the rational numbers, the real numbers… Benacerraf concludes that they, too, are not sets at all.
Extraction notes
Validity: Extracted via Max plan + API grounding/validity checks