The term associated with the theory and method of interpretation of human action in the social sciences is

Hermeneutics is the theory and method of interpreting human action and texts in the social sciences.

Theology is the study of religion and the divine, not a method of interpreting social action.

Ontology concerns the nature of being and reality, not the interpretation of meaning.

Positivism seeks objective causal laws and stands opposed to interpretive understanding.

Hermeneutics grew from the interpretation of scripture into a general theory of understanding.

Wilhelm Dilthey extended it to the human sciences as the method of verstehen.