Advice please (AP vs Honors)

Hello, this is my first post but I’ve been getting so many advices from this site already!
I just received an email from my school saying I can’t take either AP Language or AP Literature for English due to schedule conflicts. The only English class left for me is Honors British Literature.
Most people are saying that taking AP is better than taking honors.
But what if my school offers the AP courses but I can’t physically take them?

Another option for me to solve this schedule conflict is to drop AP Calculus BC and take AB instead. But since I’m taking AP Physics E/M, I don’t think it’s a good idea.

The last option I have is to drop AP US Gov & Politics and take AP Psychology.
This I don’t want to do because Psychology is more of the science than history, although my school counts it as a “history” credit. Also at my school, AP Psychology is a class where you have to work your hardest just to get a B.

So I’m considering option 1, but will this affect my chances in college admissions?
I’m looking at Ivies as my top choice colleges.
I looked at Harvard RD decisions thread and I’ve only seen one person without an AP English because his/her school didn’t offer one.
Also, can I let the college know about my situation during the interview?

I’d recommend going with the first option.

While this isn’t something you should bring up in your interview (because the interview is about getting to know you, rather than clarifying the details of your application, and if it’s conducted by an alumnus, that tidbit probably wouldn’t even be passed on), you should ask your counselor to explain this on the school report.