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Yes, the line 'Peace was never an option' is in the theatrical cut of X-Men: First Class. It is spoken by Erik Lehnsherr (Magneto) to Charles Xavier. The exchange occurs when Charles says, "Listen to me very carefully, my friend: killing Shaw will not bring you peace," to which Erik replies, "Peace was never an option."
The line "Peace was never an option" is not present in the theatrical cut of X-Men: First Class.
Specific Detail:
While the climax of the film—the Cuban Missile Crisis standoff—details the fundamental philosophical split between Charles Xavier and Erik Lehnsherr regarding the possibility of peace with humanity, Erik never uses that exact phrase.
The dialogue surrounding their separation and Magneto's decision to embrace conflict focuses instead on the inevitability of war and the superiority of the mutant race.
The specific lines Magneto uses to express his belief that coexistence is impossible are:
"I’ve been across the world, Charles. I’ve been searching for others like us. And what I’ve found is they’re afraid of us. And the humans are afraid of us. And they’re right to be. The future of the world is not coexistence. It’s us."
The AI missed the context of the line, which is a specific rebuttal to Charles, not just a general philosophical statement.