Men's, Women's and Family restrooms are the only way to solve this. A man, isn't going into the female restroom while my wife/daughters are in there...it's not going to happen. I'll use whatever means necessary to prevent it too.
I agree that now business will have to bear the burden of putting in a third restroom. Now there will be restrooms marked "Men", Women, and "Unsure".
This is what I was talking about earlier. The federal government will use our tax dollars to pay these businesses to retro fit the bathrooms and sue the ones that don't .