Final answer:
The term for a person biologically male but socially treated as female and respected in Native American culture is 2)'two-spirit'.
Step-by-step explanation:
The term used to describe a person in Native American culture who was often biologically male, treated as a female in social functions, and highly respected in society is called option 2) two-spirit.
Two-spirit people were integral members of their communities, often taking on roles such as healers and spiritual leaders, and possessed talents and spiritual powers that were highly valued. Unlike the term two-spirit, other cultural terms such as hijra, kathoey, or berdache have been used to describe similar gender identities across different societies but do not accurately reflect the unique position two-spirit individuals held in Native American societies.