The answer would be the fourth option: accepting inappropriate terminology.
This is because if someone accepted the use of derogatory terms to describe someone's sexuality, then they would be tolerating and even encouraging homophobia.
Accepting inappropriate terminology.
We can understand homophobia, as well as other forms of prejudice, as an attitude of placing the other person, in this case, the homosexual, in the condition of inferiority, of abnormality, based on the domain of heteronormative logic, ie, heterosexuality as a norm. Homophobia is the expression of what we might call the hierarchization of sexualities. However, one must understand the legitimacy of the homosexual form of expression of human sexuality.
One way to encourage homophobia is to accept inappropriate terminology that can blacken, embarrass, and be perjorative with homosexuals.