escape html in jQuery for WordPress

I am a bit confused in properly escaping html and attributes while preparing HTML string in jQuery.

This is my current approach

 $.ajax({
    type: 'POST',
    success:function(response){
        var html = '';
        if( response ){
            $.each(response,function(key,value){
               html += 'tr';
               html += 'td';
               html += 'input type=hidden name='+key+' value=tf_'+value+' /';
               html += 'div class=tf-wrapper'+value+'/div';
               html += '/td';
               html += '/tr';
            });
        }
        var table = $('#content_table');
        table.find('tbody').append(html);
    },
    error: function(a, b, c){
        alert('error');
    }
});

The ajax callback in PHP would be

public function get_settings(){
    $settings = get_option('pea_options', array());
    wp_send_json( $settings );
}

Here the data appended via jQuery is not properly escaped. So I think I need to use some custom jQuery functions to escape the values here.

But I am thinking of something like below, say Case 2

jQuery Ajax call would be

$.ajax({
    type: 'POST',
    success:function(response){
        if( response){
            var table = $('#content_table');
            table.find('tbody').append(response);
        }
    },
    error: function(a, b, c){
        alert('error');
    }
});

Ajax call in PHP

public function get_settings(){
    $settings = get_option('pea_options', array());
    ob_start();
    foreach ($settings as $key = $value) {
        ?
        tr
            td
                input type=hidden name=?php echo esc_attr( $key ); ? value=tf_?php echo esc_attr($key); ?
                div class=tf-wrapper?php esc_html( $value ); ?/div
            /td
        /tr
        ?php
    }
    return ob_get_clean();
}

The reason is WordPress plugin handbook contain coding standards which should be followed. For the jQuery part, I don't know what should be done to follow WordPress standards in this particular case. Does the case 2 look good or am I missing something here ?