The process of selling off a part of the equity of Public Sector Enterprises (PSEs) to the public is known as :
Disinvestment
When the government sells a part of its shareholding (equity) in a public sector enterprise to the public, financial institutions or private investors, the process is called disinvestment. In India it became a major part of the 1991 economic reforms, along with liberalisation and privatisation.
Deregulation means removing or relaxing government rules and controls on economic activity, such as industrial licensing. Devaluation is an official lowering of the external value of a country's currency. Demonetisation is the withdrawal of the legal-tender status of currency notes, as was done with ₹500 and ₹1000 notes in 2016.
None of these three describes the sale of government equity in PSEs, so only disinvestment fits.
Disinvestment option is correct.
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