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In OOTP speak replay means you want the season to turn out as close as possible to RL. If that's what you want use single season.
However because OOTP doesn't have a floor or ceiling on randomness (except a cap on some players ratings on HRs) you may have some implausible results. For example, a player who had his best ever far above his norm year ever, say hitting 80 points above his career BA in 78 will be rated for with single season ratings and due to normal randomness can easily exceed that by 30 points. The same occurs on the low end.
Imagine Norm Cash hitting .391 in 1961 or Zoilo Versalles.hittng .170 in 1967. But if you're truly interested in a replay you have to accept this as a possibility. Overall on average it will give you closer to players actual production for the year than the three year method.
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