According to western context, what does secularism actually denote?

Separation of religious and political authority

The correct answer is Option (2) → Separation of religious and political authority

Secularism is among the most complex terms in social and political theory. In the western context the main sense of these terms has to do with the separation of church and state. The separation of religious and political authority marked a major turning point in the social history of the west. This separation was related to the process of “secularisation”, or the progressive retreat of religion from public life, as it was converted from a mandatory obligation to a voluntary personal practice. Secularisation in turn was related to the arrival of modernity and the rise of science and rationality as alternatives to religious ways of understanding the world.