Which dictionary definition of inaugurates best applies to its use in the sentence.

"Inaugurates" most often means to introduce or to start something, for example a policy or period. It can also specifically refer to admitting someone into public office (i.e. "We will inaugurate the new president next week"), or signifying the first use of a public organization or project (i.e. "Will you be attending the park's inauguration on May 1st?").