Thank you all for your replies!
I should perhaps have supplied more background, but I was in a hurry at the time and just wanting feedback for the translation at hand. Now I'd like to add:
"Arts and crafts" was a regular part of elementary school activities when I was a kid in southern California, at least from kindergarten to second or third grade, maybe longer. (From a certain age onwards it was called "Art.")
I just can't imagine a teacher, or babysitter, or what have you, saying, "Hey kids, let's do some handicrafts!" But maybe they say that in the UK or elsewhere, I really don't know.
As to #4: 'arts and crafts' is the name of an English/Scottish cultural movement of the late 19th century,
-> I'm aware of that.
... and should be reserved for this.
-> That made me laugh out loud! Who's going to tell the pre-school and elementary school teachers all across the USA?
Just a couple of examples from a moment's goo-goo-ling: