¨Entitle¨ has at least two definitions. Although one definition is similar to the definition for ¨name¨, that is the less common usage, so ¨entitle a ship¨ sounds very unnatural. Jerry is correct that there is a tradition of ¨christening¨ a ship, a formal ceremony when the ship is given a name, but the way you phrased the question sounded like it was from a test that you had taken. So of the two choices you asked about, ¨name¨ is definitely better.
Here is what come up for the definition of ¨entitle¨ in Google.
en·ti·tle
inˈtīdl,enˈtīdl/
verb
1.
give (someone) a legal right or a just claim to receive or do something.
"employees are normally entitled to severance pay"
synonyms: qualify, make eligible, authorize, allow, permit; More
2.
give (something, especially a text or work of art) a particular title.
"an article entitled “The Harried Society.”"