I think Nothing to Resolve option should be added.  (I just received my first USPS damaged book a couple of days ago and didn't like the options either when I needed to mark the dispute as resolved.) 

I'd opt for the second choice and go for the Automatic resolution feature when you mark it damaged by USPS, except there may be some scenarios where a dialogue between the Sender and Requestor may be needed.  For instance, if the package was damaged by USPS, but only because of a poor wrapping job by the Sender, a scenario where I'd request my credit back and one where there would need to be options available to mark the transaction as unresolved.

Edited to add: these are personal opinions and not reflective of any group or site authority.

I vote for #1  :)

For instance, if the package was damaged by USPS, but only because of a poor wrapping job by the Sender, a scenario where I'd request my credit back and one where there would need to be options available to mark the transaction as unresolved.

Agree with Sianeka on this.  I've always assumed that's why damaged by USPS didn't have an automatic resolution.

yes, that makes sense, so perhaps an option *like* "no resolution needed" or "no further action needed".  or............????  anyone?

I'd like a "No further action required" option.

I also like the "No further action required" option.