To decrease the fundamental frequency of a guitar string by 2%, the discussion emphasizes the importance of understanding the relationship between frequency and tension. Participants suggest starting with defining variables for initial and final frequencies, specifically F_0 and F_1, where F_1 equals 0.98 F_0. The conversation highlights the need to derive the tension ratio T_1/T_0 by manipulating the relevant formulas. A participant points out that the derivation process can be confusing and stresses the importance of clear algebraic steps. Ultimately, the correct approach leads to a conclusion that a reduction in tension of approximately 3.96% is necessary.