[ny] Winter Tires Sold On Fb Marketplace And Buyer Isn't Satisfied

A few months ago I listed 4 winter tires on rims on Facebook Marketplace. I had a minivan that I used them on, sold the minivan, and had these winter tires leftover. The listing stated "4 Winter tires on rims. Used on my *****. Van is gone, time to get rid of the tires." where the *** is the make, model, and year of the van.

The buyers came to my house (mistake, I know), looked at the tires, took possession, and gave me money (listing was for 300, I took 200). A few days later they said they don't want them, so I blocked them on Facebook. Today I received a certified letter saying that the tires are too old and have cracks and cannot be legally installed for use. The buyers presented me 3 options:

1. Meet them at their post office (about 40 minutes away) to give them back the $200 and take the tires back.

2. They come to me with the tires, return them, and I give back the $200.

3. They sue me in small claims court for $200 plus mileage.

Do they have a case here? I didn't explicitly say in the post that they are sold as is. I did not know they had cracks (I still don't actually know this is the case, I don't know if and how they determined this). Should I take my chances in small claims court?