The period in which the world is becoming increasingly interconnected is called:

Globalisation

The correct answer is Option 2: Globalisation

Globalisation is the process through which countries, economies, societies, and cultures become increasingly interconnected through the movement of goods, services, capital, information, technology, and people.

NCERT: Since the late 1980s, India has entered a new era in its economic history, following the change in economic policy from one of state-led development to liberalisation. This shift also ushered in the era of globalisation, a period in which the world is becoming increasingly interconnected — not only economically but also culturally and politically.