Connecting Harman Kardon 2.1 Analog Speakers to LG LED HDTV with Digital out

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Hi Everyone,

This is my first post here and I'm really hoping to get things cleared up. (I also hope this is right place for a question like this) Hardware details are as follows:

TV - 47" LG LED HDTV - LG LM6200 | LG Electronics MY - This TV only has a "Optical Digital Audio" OUT. (No RCA out option)

Speakers - Harman Kardon Soundsticks III 2.1 - 3.5mm stereo - Harman Kardon - Beautiful Sound

What I need to be able to connect the two and be able to listen to the great sound of my speakers. I've been searching far and wide for the solution to my problem and I seem to have some doubts about the results. I think there are 2 options.

1) Toslink to 3.5mm Adapter - Amazon.com: Recoton Fiber Optic Toslink to 3.5mm Mini Adapter: Electronics + Toslink cable

2) Digital to Analog Audio Converter (DAC) - Amazon.com: Digital Coax & Optical Toslink to Analog Audio Converter: Electronics + Toslink cable + 3.5mm to RCA

Firstly, is there a third option out there? The first option just seems too good to be true. If there are such adapters that work, then why would someone chose a more expensive DAC, you know? I'm just not that confident about what'll work.

Just to put things in question form - What is the best workable combination to get sound out of my Digital TV to 2.1 Analog speakers?

I hope the above details are sufficient. Please let me know in case I missed something. I am hoping you guys can clarify stuff and suggest something that can work, hopefully from experience.

Thanks!!!
 
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