Best/cheapest wet wall substrate?

When removing tiles around a shower area, some of the outer paper layer came off the plasterboard where water had seeped in over the years (see picture). Now I'm looking at my options to prepare the wall for tiles and want to know what would be recommended while keeping costs down?

Option 1: Use existing plasterboard and tank it (even over areas where paper is missing)

Option 2: Replace with new plasterboard and tank it

Option 3: Replace old plasterboard with backer board (10mm +?)

Option 4: Cover existing plasterboard with thin backer board (6mm)

Any other suggestions are welcome...

Cheers!
IMG_20200623_154809.jpg
 

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Best/cheapest wet wall substrate?
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Canada Tile Advice
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