Consider the following statements: 1. Varna is the name given to a four-fold division of society. 2. Jati is a generic term referring to species or kinds of anything, ranging from inanimate objects to plants, animals and human beings. Which of the statements given above is/are correct?

[A] 1 only

[B] 2 only

[C] Both 1 and 2

[D] Neither 1 nor 2

Answer: C

Notes:

Explanation: As is well-known, the English word ‘caste’ is actually a borrowing from the Portuguese casta, meaning pure breed.

The word refers to a broad institutional arrangement that in Indian languages (beginning with the ancient Sanskrit) is referred to by two distinct terms, varna and jati.
Varna, literally ‘colour’, is the name given to a four-fold division of society into brahmana, kshatriya, vaishya and shudra, though this excludes a significant section of the population composed of the ‘outcastes’, foreigners, slaves, conquered peoples and others, sometimes refered to as the panchamas or fifth category.
Jati is a generic term referring to species or kinds of anything, ranging from inanimate objects to plants, animals and human beings.

Source: NCERT