Final answer:
The anatomical term that describes the relationship of the umbilicus to the hips is medial, as the umbilicus is located in the middle of the body close to the midline, in contrast to the hips, which are lateral.
Step-by-step explanation:
The anatomical term that describes the relationship of the umbilicus (navel; belly button) to the hips is medial. This is because the umbilicus is located on the midline of the body, towards the middle in relation to the hips. The term inferior would imply a location below another part of the body, which is not the correct relation in this context. Similarly, the term dorsal refers to the back side, and proximal is used to describe a part of the limb closer to the attachment point to the body, neither of which accurately describes the relationship between the umbilicus and hips.