Richard, capricious deities are found in many mythologies, and praised and respected nevertheless. This is how people form their mixed feelings into tales.

In effect, your option a) is correct: we must not try or pretend to make any moral sense of the world. This imperative applies to clergy and doubters alike. Morality is for humans.

For example, when AIDS was in the news, I heard many priests of various religions shout that this is God's punishment for sinners - implying that God gets it wrong in most other cases ...