Step 1: Understanding the Failure Theories.
The maximum principal stress theory is considered the most conservative failure theory for ductile materials. This theory assumes that failure occurs when the maximum principal stress reaches the material's ultimate tensile strength.
Step 2: Conclusion.
Thus, the most conservative failure theory for ductile materials is the maximum principal stress theory, making option (1) the correct answer.
Final Answer:
\[
\boxed{1. \, \text{Maximum principal stress theory}}
\]