3.
Maybe
You two are connecting well and sex might be a good way to take things to the next level....
However, the key word is might be.
Sex is tricky. It can bring you closer together or it can complicate things. Plus if you have religious or moral beliefs those can come into play and make you feel bad about your decision if things don't work out long term.
At the end of the day it is your choice. If you decide to have sex, be smart and protect both your body and your heart. Don't do it to get anything like commitment or to make him like you more. Don't do it because you're being pressured. Sex is an act of love; do it when you are ready and with someone you love.