hello @nishiti,
first, you are using a bit outdated version of SonarQube, if possilbe try to upgrade to the latest LTS release 7.9
You should use XML report, binary report is deprecated, so Approach 2 is way to go. Make sure that your installation has sonar-jacoco plugin to process the XML report (it is included by default it the latest versions).
See also this guide here [Coverage & Test Data] Importing JaCoCo coverage report in XML format