That is a bug that is fixed in the update which should be dropping soon.
For clarification though (for the correctly working updated function):
Just Observe simply runs the Execution Scene, no change.
Hold the Execution provides the option to try and snag one or more of the Condemned using Reputation or Gold, though both require at least a reputation of 1 with the city (it should at least show you as Positive).
_ is too good for them will let you pick a new punishment for the chance to gain reputation with the bloodthirsty crowd. Currently it is recommended to just pick a lower item on the list (they are crueler as they go) than the original punishment, but that will change when you can start affecting the Kindness/Cruelty of the town in a future update.