How is the tongue currently attached to the rear xmbrs? Is it welded?
If so, I would rather see you use a 2 ft section of that receiver tube; cut the existing tongue off 6 inches in front of the 1st xmbr; slide the receiver on the stub, insert the tongue 6 inches into the receiver; and use four 3/8 inch bolts, 2 each at 1-1/2 inch from end, 3 inch space, 1-1/2 inch from other end at both lap points, bolted thru the side of the receiver at mid height. Use square U-Bolts around the tongue member up thru hard blocking in the floor immediately behind your front wall and a few inches ahead of your splice.
By making the splice at the very rear of the tongue, and by only bolting thru the side of the splice at the rear you will not weaken the critical highly loaded portion of the tongue near the front wall.
You should still do the tongue strength math for your geometry, size and thickness of tongue, given your new dimensions, to be sure that the existing tongue is still adequate for the task. If it is not, it would most likely be lighter to buy a new piece of 2 inch with slightly thicker wall, than to add such a big piece of sleeve.
Okay, so let's look at that. 4 ft of 2-1/2 sq x 1/4 wall receiver will weigh about 7 lbs/ft, adding 28 lbs. (ref.
http://www.omegasteel.com/pdf/weight-per-foot.pdf). Half that length is only 14 lbs.
Let's assume your existing tongue is only 1/8 inch thick 2x2 (or lighter), at 3 lbs/ft (same ref.).
So if the tongue math says you really should have 2x2x3/16 wall, that's 4.3 lbs/ft.
For theoretical Option 1, I'm going to assume that your existing tongue is about 6 ft from tip to a point 6 inches ahead of the front xmbr. So, take away 18 lbs (3 lbs x 6 ft) and add back 30.1 for a one foot longer tongue tube (7 ft x 4.3 lbs) plus 1 ft of the receiver for the butt splice at 7 lbs (7 lbs x 1 ft). So that's 37.1 - 18 lbs, or a gain of only 19 pounds (plus bolts).
Whereas, for your proposed Option 2 if you cut and extend using the 4 ft sleeve you would be adding 28 lbs (plus bolts), and it would be closer to the tongue adding tongue weight. So 28 lbs plus the original 18 lbs equals 46 lbs for comparison.
If the math says that your existing tongue tube is still beefy enough in the extended position, Option 3, you might save a little money just buying 2 ft of receiver and not buying thicker tube stock. Add 14 lbs (7 lbs x 2 ft) plus the original 18 lbs for comparison and you are at 32 lbs.
So like I said, with about the same effort, you can likely save some weight and still beef up your tongue to meet the design goal outlined by the tongue design recommendations.
Remember, in a light weight build, every time you don't sharpen your pencil you are adding unwanted weight; and over the course of a build all of those 10 to 25/ct additions will end up multiplying out. Before you know it your 700 lbs goal becomes 1000 lbs.