Interior Wall Repair

I am looking for advice on how to proceed with a living room wall I am working on.
The previous owners of my house had applied a heavy texture to the majority of the interior walls of the house. Stucco is the best I can describe it. A couple of the remaining walls were wallpapered.
I am working on one of the living room walls that were papered. After removing said paper it is readily apparent why it was covered. Ugly old sand texture paint and every drywall nail has seemed to have popped.
Two options I am considering:
A: rip out the old drywall and replace trying to replicate the left inside corner texture and right outside corner texture.
B: Add a second layer of drywall with the same texture issues.
My question is which might be the lesser of the two evils? It's a plain wall w/no windows. I really don't want to re-wallpaper or texture the wall as all the others. Also, how would one go about taping the ceiling, inside and outside corners which all butt up to a textured surface?
Some experienced insight would be greatly appreciated.
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