The correct answer is option 4 - Ludhianvi was widely acclaimed as a people`s poet.

Option 1 is incorrect because Sahir Ludhianvi was not a translator of Omar Khayyam`s Rubaiyat into Hindi. He was primarily known for his own poetry and lyrics.

Option 2 is incorrect because while Ludhianvi may have been socially conscious and may have used his poetry for social causes, he was not primarily known as an eminent social activist.

Option 3 is incorrect because Ludhianvi was not known for his work in Urdu drama and acting. He primarily gained fame for his poetry and lyrics in Hindi.

Ludhianvi`s work was known for its social and political commentary. His poetry often addressed issues of inequality, injustice, and the human condition. He expressed the emotions and concerns of the common people through his powerful and thought-provoking verses. His work resonated with the masses and he became widely acclaimed as a people`s poet.