Option 1 states that renouncing practices derogatory to the dignity of women is a Fundamental right. However, this is incorrect. Fundamental rights in the Constitution of India pertain to individual rights such as freedom of speech, right to equality, and right to life and personal liberty. While these rights are important for the protection of women`s rights, the specific phrase "to renounce practices derogatory to the dignity of women" is not explicitly mentioned as a Fundamental right.

Option 2 states that it is a Fundamental duty. This is the correct answer. Fundamental duties are moral and civic obligations of every citizen that are listed in Part IV-A of the Indian Constitution. These duties promote respect for women and equality. One of the fundamental duties mentioned in Article 51-A(e) is "to renounce practices derogatory to the dignity of women."

Option 3 states that it is a Directive Principle of State Policy. Directive Principles of State Policy are guidelines for the government to implement policies that aim to promote social and economic welfare. While the Constitution does include provisions for the protection of women`s rights under Directive Principles, the specific phrase "to renounce practices derogatory to the dignity of women" is not mentioned as a Directive Principle.

Therefore, the correct answer is option 2