Italic passage enclosed in punctuation (nesting?)

I have the following sentence:

The book, "One Hundred Years of Solitude," sat on the shelf, majestically gathering dust.

For the italicized title, should I enclose the whole thing, including the enclosing quotes, in italic passage indicators:
.78,"o ,hundr$ ,ye>s ( ,solitude10.'
or should I keep my italic indicators nestled up to the words:
8.7,"o ,hundr$ ,ye>s ( ,solitude.'10

Perhaps there is a third option that would be best?

Thank you very much for your time.
–Kyle
edited by kdejute on 8/27/2015