Creating new VHDx on a virtual hard drive or physical partition

Ladies and gents,

Any input is appreciated, here is the deal.

I have a Server 2012 R2 running Hyper-V, my questions is as follows:

1 - Should I create individual partitions in my RAID drive (dedicated to VHD drives), where I can create a partition named VM1-C of 500GB, VM1-D of 500GB Or,

2 - Create a 1TB Partition where I store VM1-C as a VHDx (file) and VM1-D as a VHDx (file) each of 500GB Fixed size.

Which option will give me the best performance? These 2 partitions will be accessed by 20-30 users and they will reside on a RAID 5 where the physical drives are 10K RPM.

What would be your take if performance is the biggest concern.

TIA!