How to fix "Package hyperref Error: Wrong DVI mode driver option `dvips'"?

Don't use the dvips option for the class (and any package). It will be passed to every package, like all class options, and tell these that they should use the DVIPS mode or driver. You however use apparently XeLaTeX which uses a different driver.

You should not explicitly state the driver in any case. The packages should nowadays be able to determine the correct driver themselves and stating a wrong one manually leads to exactly this kind of errors.

I have this version:

moderncv.cls    2011/12/23 v0.15.1 modern curriculum vitae document class

and do not get a problem with the driver.