Precise Strike and negative mods

Quick question: A hero has a negative mod and uses a Precise Strike, whose description is “Attack using [power/quality]. Ignore all penalties on this Attack, ignore any Defend actions, and it cannot be affected by Reactions.”

From here, there are two possible interpretations:

  1. The negative mod is applied to the roll, but as is ignored it doesn’t affect it, so the negative mod is spent.
  2. The negative mod is not applied to the roll, because is ignored, so it is not spent and will remain with the hero until he chooses a different action and can be applied (or ignored)

I’m guessing the correct interpretation would be 2, but there was some debate at my table. What would be the correct answer?

2 was the interpretation used by Christopher Badell in one of the livestream sessions.

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Interpretation 2 is the most common as far as I know.

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