I had played as 2 because I think if it was 1, the card could have been clearer (eg. "place the target in an adjacent empty hex"), and "closest empty hex to that beserker" can indeed be read "closest from the target's perspective"
However, then I saw this example, where Shadowborne Games said
"The Ursus will end up in the empty hex to the north west of her current position with the tribesman ending to south east of the bonemaiden".
Interpreting it as 2, I would leave the ursus where she is because she was already as close as she could get to the beserker.