But then, nobody's defined "option". In my recollection, an option is not something that may happen beyond our control, but something we choose. Yes, Oxford still thinks so: The one who tells another "Failure is not an option," is in effect prohibiting the other from making that choice. If it's understood that the speaker has the power to inflict punishment, it would carry the very same message as the longer version above. But, of course, the recipient of the injunction might still decide to fail, if the alternative were worse than whatever punishment the speaker could mete out; for instance, die trying.