1 is not a good choice. 2 is a good choice if you think the person might know more about the subject than what you read in the news. 3 is a good choice if you think the person might have known about the the subject before it every appeared in the news.
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MusicgoldI thought ‘knew’ to be more appropriate because I was telling the other person what I thought at the instant when I read the news.might is a modal verb. The only verb form you can place after a modal verb is the base form (the dictionary form), not a past tense or any other form. knew is the past of know, not the base f