To solve this problem, we need to understand the genetic interaction responsible for fruit color in squash.$\newline$Fruit color in squash is an example of epistasis, specifically dominant epistasis.$\newline \bullet$In dominant epistasis, one dominant allele of a gene masks the expression of alleles of another gene.$\newline \bullet$In squash, the presence of a dominant allele (W) inhibits the expression of another gene responsible for color.$\newline \bullet$The genotype W\_ (where \_ can be any allele) results in white fruit, regardless of the alleles present at the second locus.$\newline \bullet$Only when the genotype is ww, the second gene can express its color, leading to yellow or green fruit depending on the alleles present at the second locus.$\newline$Therefore, the correct answer is Option 2: Dominant epistasis.