Performance Tuning :: ORA-01555 - Increase Undo Size Or Retention?

I have got the following error yesterday

ORA-01555 caused by SQL statement below (SQL ID: fdxcyoin67ty8t, Query Duration=380128 sec, SCN: 0x0229.ff00afd0):

following are the existing settings

SQL> show parameter undo

NAME TYPE VALUE
------------------------------------ ----------- ------------------------------
undo_management string AUTO
undo_retention integer 96000
undo_tablespace string undo

[code]....

following are the details from v$undostat

select begin_time, end_time, undotsn, undoblks, maxquerylen, maxqueryid, activeblks, unexpiredblks, expiredblks, tuned_undoretention from v$undostat
where trunc(begin_time)=trunc(sysdate)-1 order by begin_time;
BEGIN_TIME END_TIME UNDOTSN UNDOBLKS MAXQUERYLEN MAXQUERYID ACTIVEBLKS UNEXPIREDBLKS EXPIREDBLKS TUNED_UNDORETENTION
-------------- -------------- ---------- ---------- ----------- ------------- ---------- ------------- ----------- -------------------
21-04-13 00:08 21-04-13 00:18 1 12733 378446 duqnawh32hp4u 91152 7068448 225440 345600
21-04-13 00:18 21-04-13 00:28 1 8951 379047 duqnawh32hp4u 99344 7072800 225440 345600
21-04-13 00:28 21-04-13 00:38 1 14073 379650 duqnawh32hp4u 90128 7075872 234656 345600

[code]....

Following are the details in AWR report (00:00 til 01:00 of 21-Apr-2013) .... not thet the error was produced at 00:42

Undo Segment Summary DB/Inst: DBCPY/dbcpy01 Snaps: 18853-18854
-> Min/Max TR (mins) - Min and Max Tuned Retention (minutes)
-> STO - Snapshot Too Old count, OOS - Out of Space count
-> Undo segment block stats:
-> uS - unexpired Stolen, your - unexpired Released, uU - unexpired reUsed

[code]....

Undo Advisor information taken 'now' is as following

SQL> select dbms_undo_adv.longest_query(sysdate-2,sysdate) from dual;
DBMS_UNDO_ADV.LONGEST_QUERY(SYSDATE-2,SYSDATE)
----------------------------------------------
379650
SQL> select dbms_undo_adv.required_retention from dual;

[code]....

In above situation what should be my first choice (assuming increasing space is not an issue) - increase undo tablespace or increase undo retention?

If latter is the choice then what should be the value? Because as I understand present 96000 value is taken as lower limit and because of auto tuning the actual value (TUNED_UNDORETENTION) being used was 345600 In that case shall I set it to something > max(maxquerylen) i.e 379,650 + X?Or I shall increase the undo tablespace size?

From Undo Advisor output it looks to me that even if I increase the undo retention to 379650 current undo size will be able to support it (may be at the expense of DMLs)Is that right?