With whom should transgendered male-to-female women compete in sports?

aficionado
I know that this is a sensitive and probably controversial issue, but I'm just curious to know.

Transgendered people obviously want to be accepted as the gender they associate with. But a male-to-female woman certainly has the advantage with physical strength.

So when it comes to sports, with whom should they be allowed to compete? Competing with women would obviously give them the physical advantage, and competing with men may be termed discrimination.
They should compete with women
They should compete with men
They shouldn't be allowed in sports
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With whom should transgendered male-to-female women compete in sports?
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