Yes, that is a possibility that company A could rescind their offer if you tell them about B but honestly, that's a spiteful approach for them to take. They should give you their hard deadline, but you also need to respect that and not drag it out with them. It also depends on what level of a position we're talking about here. If it's mid or senior level position that can be hard to fill with not a large candidate pool, then they should have no problem waiting another week to 1.5 weeks for you to make a decision, but if it's a position where they can easily go with their back-up candidate they yes, they may have no issue with rescinding their offer that's why there is a bit of a risk involved with option 2. You can buy yourself a bit more time if you enter negotiations with company A starting on Friday when they check back in with you, but if they are looking to move quickly you would need to be prepared to accept or reject an offer on Monday or Tuesday next week possibly.
It really all depends on how badly you need a job. If you NEED a job with either A or B then go with option 1 which protects you either way.
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