RTG Problem 36 / Attempts

What is the status of the Black stones?  

The trick is the laddering system on the White circle stone. theatens to connect out by making a ladder, while reducing the aji of a White cut at square.

The stones are alive?  

or

The stones are alive?  

Even if Black manages to save the stones, what is the overall strategy of White? The cut at square (earlier) in place of 2 could potentially be utilized to make a wall.... and if Black connects out, is where is the certainty of territory for Black? -Mystery Go Player