What does the term "entrenched inequalities" refer to?

Inequalities that remain relatively untouched over generations.

The correct answer is Option 2 - Inequalities that remain relatively untouched over generations.

Inequalities which are entrenched, that is, which remain relatively untouched over generations, are more dangerous for a society. If in a society certain classes of people have enjoyed considerable wealth, and the power which goes with it, over generations, the society would become divided between those classes and others who have remained poor over generations. Over time such class differences can give rise to resentment and violence. Because of the power of the wealthy classes it might prove difficult to reform such a society to make it more open and egalitarian.