Since a dropdown basically contains a key/value pair, i'm a big fan of utilizing the ACS Commons Generic Lists (http://adobe-consulting-services.github.io/acs-aem-commons/features/generic-lists.html). This provides an easy interface for authors/admins to edit the text/values in the dropdown on the fly (therefore meaning you don't have to be bothered with modifying a JS file down the road for new options or changes), while also providing a JSON feed that works directly with the widgets supplied in AEM.
So for example, you can do
<jcr:root xmlns:cq="http://www.day.com/jcr/cq/1.0" xmlns:jcr="http://www.jcp.org/jcr/1.0" jcr:primaryType="cq:Widget" fieldLabel="Target" name="./target" options="/etc/acs-commons/lists/age-ranges/_jcr_content.list.json" type="select" xtype="selection"/>
Or if you're really set on using Sightly, you can utilize the API to return getItems() and then use something like the following:
<select data-sly-use.options="options.js"> <option data-sly-repeat="${options.items}" value="${options.value}">${options.text}</option> </select>