How would you handle this situation? re: Initial Job Interview and Salary

I'm in an industry where titles are often inflated or deflated based on the organization so when a position is posted, it's often hard to judge the pay-scale. That being said, I sent my resume to a company with a title equal to mine currently but in a bigger market. There wasn't a salary range listed on the job description, nor was I asked to insert my desired requirements.

I receive an email from the company today indicating they'd like to setup a phone interview with me for later this week. Included in the email is the salary range which at the high-end is 20% less than my current and the market is about 5% more expensive than BR.

How would you reply to the email (abridged below)?

- Yes, I'm available for an interview.
- Yes, I'm available for an interview however if I were to be offered the position, the Salary would need to be negotiated.
- Thanks for the email, but given the posted salary range, I will not be a suitable candidate.


Obviously, I think the last of the three is not ideal; but more curious as to how you'd respond to the request for an interview knowing the salary range needs to be increased significantly.