For some schools there’s a 1/4+ rule on classifying yourself as a certain identity for the purposes of admissions. So for example if your father was half or completely hispanic then the student could claim hispanic without violating the university policies. Under such a policy students who are only 1/8 or less would not be able to classify themselves as hispanic when applying.
Ethically and technically aren’t always the same and many argue that you should only claim a potentially advantageous minority status if you genuinely feel that you have been disadvantaged due to your minority position or if you strongly identify with that group.