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The way I found is faster than your two if wasteful.
You don't really have to modify much. You could put it in as a quest where the submit is a single iron ore or iron gravel explaining how to do it in the quest text (my way or the ways Nunoagapito mentioned) or you could give one iron ore or...
Out of curriosity what is the planned method for getting past Flint/Copper tools without rewards from reward bags or cheating?
I tried 22 ways and I have found only one that works. It is horribly inefficient.
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Options considered:
Terrain smasher (for obsidian or iron) - Needs Iron...
