2) Make it index.php?page=contact
The better approach is use a centralized system. You could get the page value and load the appropriate template.
For example:
switch ($page) {
case "home":
$template="home.tpl";
break;
case "contect":
$template="contact.tpl";
break;
default:
$template="404.tpl";
break;
}
$smarty->display($template);