I got fired from my job while being in the middle of the interview process at a different organization. Do I update the interviewers and tell them that I was fired?

TL;DR: while still being employed at Organization A, I was looking for a new job and had an interview at Organization B. The day after the interview, I was fired from Organization A. Since then, Organization B has invited me back for a 2nd/final interview. Do I tell them that I no longer work at Organization A, or do I act as if I still do?

About a week and a half ago, I was fired from my full time job that I held for close to 5 years. The reason I was given was subpar job performance in recent months. I learned after the fact that the decision was a bit controversial and actually came from the CEO and not my direct supervisor. If any good came out of it, it’s that my former supervisor offered to be a reference as I look for new jobs.

Even though I wasn't able to leave on my own terms, being let go was a bit of a blessing in disguise. The job was at times, very stress-inducing with long hours and a lot of travel. I was definitely feeling burned-out with the job and organization within the past six months. I also fully recognize that this burned-out feeling contributed to my declining performance. Needless to say, before even being fired, I was ready to move on and had begun job searching.

Ironically enough, I had an interview with a different organization the day before I was fired. In the interview, I had obviously talked as if I was still employed with my former organization, but also mentioned why I was ready to move on. The interview went well and I was invited back for a 2nd/final interview, which will be happening this coming Tuesday.

So now I'm in a tough spot. I'm walking into an interview where the interviewers think I'm still employed, which has changed since the last time I met them. After a lot of thinking, I've come up with three strategies on how to handle this, but I'm conflicted on which one is best:

1. Be honest and upfront and say I was fired since the last time I met them....although saying that I was fired due to performance would obviously raise red flags with the interviewers.
2. Lie and act as if I still work with my former employer, with the fear that I could be exposed if the interviewers do a reference or employment check after the fact.
3. Find a middle ground and say that I no longer work with my former employer (true) but that I left on my own terms (lie).

Thoughts on how to handle this?

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