The term 'FILE MENU OPTION' refers to the options available in a computer's file menu. These options include 'SAVE' (4 letters), which allows users to SAVE their work and store it for later use; 'RENAME' (6 letters), which allows users to change the name of a file; and 'SAVEAS' (6 letters), which allows users to SAVE a copy of a file with a different name. All of these options are important for organizing and managing files on a computer.