If I were a betting man, I would be willing to bet that there is much more to it than her "not really" answer. But then again, there may not be. Just remember the saying of believing nothing of what you hear and only half of what you see.
My thoughts on your options.
1) I agree, doing nothing is allowing it to continue. Is that what you want?
2) This is a distinct possibility. Keep in mind that DB'ing techniques are not set in stone - what works for one doesn't necessarily work for the other. Communication is key. Work on it.
3. How could you set up a sting? I am interested in this for a variety of reasons. Although, we both may not be ready for what we find.
4) I don't think telling her parents would be such a great idea. She would see that as enlisting them for your aid and possibly even resent you more than that. I don't think her parents would have that much, if any, sway in the long run. And it quite possibly would do more damage than good.
5) This is your best plan.
I have a few plans in the works myself, but as with conversations, they never seem to go as how intended. One foot in front of the other!
There are moments in this life when you are so confident in the rightness of your actions, that not even for a second do you consider the option that you might be wrong.