The contents of the OPTIONS.XML file are to be Copied and Pasted into the "Options" section of your Add new user profile field, as I described in my post
#12. The list was too long for me to add to the thread. These are the options that your member will see (Drop down Menu) when he or she registers or Edits their Profile.
THE OPTIONS.xml IS NOT to be uploaded as a file. Just copy and paste its content into the Options as described above.