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3 (720p) gives you the widest viewing angle and also is at 60fps so you can slomo the footage. If you are shooting timelapses i might suggest using 5 (1080p) so you can pan around the frame.
or just use a regular digital photo camera on sequence, add those frames together as a video sequence and that way you actually have 16MP pictures to scroll around through during the time lapse.
But I agree, setting 3 is the way to go for skiing. If the 960p had a 60fps setting I would use that for skiing, but it doesn't.