Biopiracy refers to:

The correct answer is Option (2) → Unauthorised use of bioresources

(1) Use of bioresources in optimum level — Incorrect. Using bioresources at a level that nature can renew is sustainable use. It is the opposite of piracy.

(2) Unauthorised use of bioresources — Correct. Biopiracy is the use of bioresources by multinational companies and other organisations without proper authorisation from the countries and people concerned, and without paying them. Patents on turmeric, neem and Basmati rice are examples. The countries rich in biodiversity and traditional knowledge lose out.

(3) Authorised use of resources by companies — Incorrect. If the company has permission and shares the benefit, the use is legal. Piracy needs the missing permission.

(4) Authorised manipulation of living organisms — Incorrect. This describes approved work on living organisms, for example genetic engineering with the necessary permissions. It has nothing to do with taking resources without authority.

NCERT Extract:
Ethical Issues – “… Biopiracy is the term used to refer to the use of bio-resources by multinational companies and other organisations without proper authorisation from the countries and people concerned without compensatory payment.”