it's the #2, i believe, and it's a quick hop (just one stop), but it's the same price ($2.25) as if you were going all the way to the boardwalk.
You can indeed get a jitney from harrah's to the borg. i realize you probably already know that, but since the title of the post is 'transportation between harrah's and borgata' and the first thing you mention is the 'HET shuttle,' i thought it was worth clarifying. The total rewards shuttle, of course, only travels among the four caesars entertainment properties: bally's showboat, caesars and harrah's.