Ideally you should test your universal on both an iPhone and an iPad. If you don't own an iPad but just an iPhone, then if it works well on the iPhone and on the iPad simulator, then you should be OK. But it is still possible for there to be hidden issues. One issue you can have by not testing on a real iPad is making sure all of you iPad specific images and xib files actually work on a real device due to filename case sensitivity. But you can only test on devices that you actually have.
There is no requirement that you test on any device before you can submit the app. Apple has no way to know whether you did or not. Of course it is a really bad idea to only use the simulator for testing since there are so many differences.
As for submitting the app, you must use idea 2. Create an update to your existing app in iTunes Connect. Submit the binary. It will be detected as a universal app. Then you can update the meta data with new iPhone screen shots and iPad screen shots.