I don't understand why these are the only options to choose from when it comes to Race. There should be a Latino and Bi-racial option as well as Other with a free text field. I have seen where another parent complained about this in 2019 with the response that it would be looked into. It's 2021 and it still hasn't been updated. The school statistics are definitely skewed and misrepresented with this inaccurate information as we are forced to choose from the current limited options.
Your district can work with PS Enrollment to revise the dropdown. However, if the state only allows the reporting of certain races then does will be the ones available for the district to use. My district uses PS Enrollment and have the same list. Since these are the only ones allowed for our state reporting purposes, I am stuck using them.
I know that doesn't solve your issue, but maybe this will help you to understand. PowerSchool can't change it. The states and districts have to.
Have a nice day!!!