The second option, by far.
The advantages a hyperthreaded intel i7 enjoys are of little consequence to gaming. You'll gain no benefits over the other, regardless of which processor you choose. If your angle is purely gaming, your only option in terms of price efficiency is the i5. That, a z97 motherboard and a decent aftermarket cooler will put you in place for a powerful processor based experience for several years to come.
Now the graphics ideal looks like
770=280X < 780=290 < 290X < 970
Short of listing a dozen specifications detailing why the 970 is a lot better than a 280X, it's better to defer the differences from the amount of graphics levels between them, as a rule of thumb. Not a definitive idea of performance difference(especially where AMD is concerned!) but it works for those less experienced consumers