That Item's Technically Worse Than the Rope of Climbing
Because a ring occupies a valuable magic item slot and a rope of climbing doesn't, the item you describe, despite the ring of rope being able to change from a ring to a rope and back, should be cheaper than the rope of climbing.
It's not as though the city watch, when they toss you in the hoosegow, is going to let you keep your fancy magic ring, so the "disguise" aspect of the ring of rope is wasted except in a town full of nincompoops. However, I'd give it a daily use limit because, otherwise, characters would buy the ring of rope, instead of a rope of climbing, and just leave it in rope form.
Below's my take.
Ring of Rope
Aura faint transmutation; CL 3rd.
Slot ring; Price 2,000 gp; Weight 0 lbs.
Upon command the ring of rope transforms into a 60-foot-long rope no thicker than a wand, but strong enough to support 3,000 pounds. Once transformed, upon uttering a second command word, the rope snakes forward, upward, downward, or in any other direction at 10 feet per round, attaching itself securely wherever its owner desires. It can unfasten itself and return in the same manner.
The rope can be commanded to knot or unknot itself with a third command word. This causes large knots to appear at 1-foot intervals along the rope. Knotting shortens the rope to a 50-foot length until the knots are untied, but lowers the DC of Climb checks while using it by 10. A creature must hold one end of the rope when its magic is invoked. The rope can be returned to ring form by a fourth command word, spoken by any who are touching the rope; this transforms the rope back into a ring worn by the creature who spoke the command word. If the creature can't wear rings, the ring of rope falls to the ground in a square adjacent to the creature.
The ring of ropes can be transformed from ring to rope and back at will, but each transformation into a rope expends at least 3 minutes from how long it can be used each day. The rope functions for 30 minutes per day.
Construction Requirements: Craft Wondrous Item, animate rope, shrink item; Cost 1,000 gp