does prestige of university where I will be getting my Master's degree matter?
Go for option 2. 

When it comes to an MSc the role of your supervisor is less important than that in a PhD. Yes, you have to do some research (not always) and working with a "great guy" if far better than working with an "OK guy", but remember you are doing an MSc and planning to go to industry. People will care more about your grades than your research potential (short-sighted but true in my experience). 

In addition, being in a more prestigious institution opens you more avenues; it will be a better selling point 5 years down the line and the top-ranked US university will probably have a better alumni network than a mid-rank public university. 

In general, MSc studies are a way to buy some credentials to use either in the job market or as stepping stone to move to a better institution for your PhD than the one you are already. Get the best possible.