Final answer:
The Swetambara sect interprets the teachings of Mahavira liberally.
Step-by-step explanation:
The Jain sect that interprets the teachings of Mahavira liberally is the Swetambara sect. Unlike the Digambara sect, which believes in complete nudity as a requirement to achieve spiritual liberation, the Swetambara sect allows its followers to wear white clothing. They also do not restrict women from attaining spiritual liberation. Swetambara Jains are generally more lenient in their interpretation of Mahavira's teachings and are more open to adapting to modern practices.