If, I port Ruby on Rails (licensed under MIT) from Ruby to Java what license options do I have? Would I have to use MIT or a compatible license?
The conservative position is to assume that your port is a derived work of the original. If you consult a lawyer, you might be offered a more-or-less 'clean room' procedure to try to avoid this, but since you've already read the Rails code, it's probably too late for that unless you want to hire other people.
So you must choose a license that satisfies your obligations under the MIT license.
The good news is that the MIT license is extremely permissive. I believe that you have complete freedom to choose a license for your derived work.
The license includes:
The above copyright notice and this permission notice shall be included in all copies or substantial portions of the Software.
So, even if you choose a more restrictive license, you must give notice that the original was MIT-licensed.