So I have a 1965 ish Mercian track frame. It is fixed wheel with horizontal dropouts. I have moved from London (flat) to Devon (hilly) and want to get some use out of such a great frame. But how? Mercian can add bits to the frame - I was going to send it to them for a re-spray anyway, but I cannot afford the £110 to add vertical dropouts/gear hanger.

Option 1. Can I pop a single speed free wheel on and have 2 or 3 chain rings on the front?

Option 2. Can I add an internal hub to the rear wheel?

Option 3. ?

Any ideas?