Hardening of an operating system involves implementation of security measure to make the system compliant with the security policies of the organization.

What does it mean by security policies in the above context?

In the above context, it generally means that the org has some security 'limits'/tracking capabilities it expects each system to have/do.

How this is implemented is dependent on the specific OS in qn, amongst other considerations.

Ofc that's just the short answer . Hope it helps point you in the right direction.

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The goal is to generate a script which is undertakes hardening of Ubuntu OS using an GUI based approach. During the hardening process, the user should have the flexibility to make settings based on the organisations IT security policy provision like blocking ssh, usb, ToR etc. The grading of tool will be based on hardening functions implemented, attention to user experience and flexibility to take user settings. Security is of utmost importance.

could you elobrate a little. maybe with an example

This sounds like a university/college project.

Asking for clarification from the person who set the task is a good way to understand what is needed.

Asking other people may result in misunderstanding the intent and thus receiving a bad mark.

I thought it sounded like homework ...

@TheDarkArtist
from the LQ Rules https://www.linuxquestions.org/linux/rules.html

Homework or not... wouldn't tools like Lynis do the job?

That depends on what "the job" is.

Lynis is a command line reporting tool, and it's entirely possible that the security auditing side of this is irrelevant; that the course tutors want to see an understanding of what a user-friendly GUI involves, and the functionality is just a plausible "modern" task.

Which is not to say Lynis couldn't still be used as a base in such a project, but then if the real task is to demonstrate programming ability then using something pre-built - whilst a good idea in real world programming - may not provide a demonstration of the skills a programming professor would want to see.