Rancidity is the spoilage of oils and fats.
It usually occurs due to oxidation of unsaturated bonds present in oils.
Unsaturated oils contain carbon-carbon double bonds:
\[
C=C.
\]
These double bonds are more reactive towards oxygen.
When oxidation occurs, unpleasant smell and taste are produced.
Hydrogenation reduces rancidity by adding hydrogen across double bonds.
This converts unsaturated oils into more saturated fats.
The general idea is:
\[
C=C+H_2\rightarrow C-C.
\]
Hydrogenation decreases the number of reactive double bonds.
Therefore, the oil becomes more stable towards oxidation.
Oxidation increases rancidity, so it is not correct.
Decolouration removes colour, not rancidity.
Winterization separates waxy materials, but it is not the main method for reducing rancidity.
Hence, rancidity of oils can be reduced by:
\[
\text{Hydrogenation}.
\]