If you are going to use the System's New Student Ethnicity Form, you will need to set your powerschool District Ethnicty codes with K-12 Online's. In Powerschool, the Fed_Ethnicity field (K-12 Online's "Race" field) generally captures whether the student is Hispanic or not. You will need to assign the correct race code in the race categories and create sub-categories together with their associated race categories. See below:

These can be set up in PS as follows:

Step 1.  Go the Powerschool's admin panel.

Start Page > District Setup > Federal Ethnicity and Race Settings

For the Ethnicity codes, synchronize your PS ethnicities with K-12 Online's ethnicities by going to the following:

K-12 Online Navigation: DCP > SETTINGS > System > SIS Settings > Race & Ethnicity