How to Setup DR site for SQl server

We wont be able to tell you what's best. That will be a decision made by your management (ie the business owners of the data) as they will need to decide on how much data they are happy to lose vs. how much they want to spend on the DR infrastructure.

What you need to do:
1 - Get together information about Replication, Mirroring, Log Shipping, UPS(or similar delivery service). Learn how they cover different sorts of outages and where they are good/bad. What administration they need. What hardware/licensing requirements they have. What training you and your team will need.

2 - put the key points of 1 into a document highlighting the considerations that management need to know. Ask them for their thoughts on data loss, expense of spare servers/network etc and then start to move in on a particular tech.

Once they are happy with what they are spending and how secure that makes them feel you need to learn that tech inside out and then confirm it will still do what they want for the investment they are making. If it's still rainbows and unicorns then that's your solution, if not you'll need to do the same for the next option.

Then implement chosen solution.