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Can someone please clarify if I have a choice as to which section I fill out, as both seem applicable to me. One seems to have distinct advantages for my child though...

I am British by descent, having been born in the late 60s in Australia to British parents. We moved back to the UK in the early 70s where I lived until I was 39, but I emigrated to Greece in 2007 with my partner.

We settled in Greece, married and had a child in 2010. We stayed there for 5 years before the crisis sent us back to the UK in 2012.

So, my child is Greek as is my husband. I have lived most of my life in the UK, but have also spent time outside the UK and returned.

So I am confused as to which section of the application form I am to use! The big difference is that 3(2) would give my child citizenship by descent and 3(5) would offer citizenship otherwise than by descent (which surely is preferable??).

Can I just choose between the two or is there only one choice for me?

Your child is entitled to register under the preferential 3(5) after completing 3 years residence in the UK.

Thank you!

There is a choice and you can select the better option- section 3(5). You should be aware that section 3(5) registration does not require the children to have Permanent Residence. 3 years residence is enough- applies to child and both parents, usually- and both parents normally need to sign the application.

Not directly relevant to British citizenship- but presumably your Australian citizenship is still valid- have the children been registered as Australian citizens by descent?