You give up the two. Every single time.
Well, it would be really, really easy for a coach to design a defensive scheme that would absolutely deny a three and absolutely guarantee a dunk. Funny thing is, you never see that with 37 seconds left in the game. Never. 0.5 seconds left? Sure. 37 seconds? Nope.
What you don't get is that at that point in the game, the difference between a 1 point lead and a tied game is huge. If we had a lead and the ball, the Kings likely get fouled and have to defend the lead by shooting free-throws. If the game is tied, it forces you to make a play because the other team won't foul you on purpose.
It's a lot easier to defend a lead from the line than it is trying to make shots from the field.
There were 37 seconds left in the game. If we gave up the dunk, the Nets would have played defense, not fouled. They were going to get another possession, with at least 13 seconds on the clock to make something happen.
Unfortunately, I don't have access to stats that would let me pore through and figure out the following numbers. Find all scenarios where the home team is inbounding or rebounding the ball with between 35-40 seconds on the game clock and has a fresh shot clock. What are:
a) Their winning percentage if up by 3?
b) Their winning percentage if up by 1?
c) Their winning percentage if tied?
My guess is that (a+c)/2 is higher than b. That would assume that the three point shooter makes 50%. (You could also correct for offensive rebounds on the 3 obviously.)
At any rate, it's not as clear cut as you think it is. I won't deny that the difference between up 1 and tied is big there, but it's likely that the difference between up 3 and up 1 is even greater, especially given that we were at home.
To figure that out, we'd have to resort to a lot of number crunching. It would take a day if we had access to the data. But to me, having had tens of minutes to think about it, it still seems that not allowing the dunk and giving up a coin flip on a three is the better move and will result in winning the game more often. Beno is being criticized for making that decision with less than a second to think about it, and that's unfair.