So, you're saying it's #2?
en.wikipedia.org
And Bay Lake isn't significantly larger especially when you compare actual lagoons to the ocean.
I've seen three story condos called "Penthouse Suites." Marketing is free to misuse the language (until lawsuits step in because someone actually thought they were getting a skyscraper penthouse suite).
Disney felt free to call an artificial lake a "lagoon" to make it sound exotic. Their complex of parks aren't a "world" and the castle park ain't a "kingdom." And there's no real "magic" happening there. There is literally no Seven Seas, no lagoon, no magic, no kingdom, and no world outside of Orlando. And Bay Lake isn't anywhere near or an actual bay.