Final answer:
Cultural relativism emphasizes understanding each culture within its own context, but does not endorse all practices as morally acceptable. Ethical relativism suggests a culture's morals are correct within that culture, yet is challenged by issues like minority rights and harmful customs. Nussbaum's concept of reasonable pluralism offers a third alternative seeking universal justice while respecting cultural diversity.
Step-by-step explanation:
According to 'the challenge of cultural relativism', it would be inaccurate to label Rachel's a cultural relativist without further context as she critiques certain aspects of cultural relativism. The concept of cultural relativism is the understanding of a culture's beliefs and practices from its own perspective, without imposing one's own cultural biases. However, this does not imply that all cultural practices, such as female genital mutilation, should be uncritically accepted.
Moreover, the notion of ethical relativism states that a culture's moral code is correct within that culture, but it becomes problematic when considering minority views or the ability to critique harmful practices. Seeking a third alternative to moral absolutism and cultural relativism, a philosophical stance like the one suggested by Nussbaum, points towards a universal justice sensitive to cultural differences, advocating for a position called reasonable pluralism.
Thus, while cultural relativism enables us to understand cultures different from our own, it does not necessarily endorse an 'anything goes' approach to morality, rather it advocates studying and understanding cultural practices within a broader societal context.