The pronoun dynamic fields, used for Staff and Students in various pages, looks to the Preferred Pronoun field first, and the Gender field second (if the Preferred Pronoun field is empty) to determine which pronouns to use for the recipient.
Related Guides: How to look up Students and Staff
When a pronoun dynamic field (he/she, He/She, him/her, Him/Her, his/her, His/Her) is selected, you will see the following message: A pronoun field has been selected. If preferred pronouns are in use, they will be used for this dynamic field.
Config > Administration > Lookup Tables

On the Preferred Pronouns Lookup Table, when creating/editing an entry a message will appear Preferred Pronouns will be used when dynamic fields are used (eg when sending SMS/Email via the system).