The correct answer is option C: Both 1 and 2.

Explanation:
1. Branding means stamping a product with a particular name or sign:
Branding is the process of creating a unique identity and image for a product or service in the minds of consumers. It involves creating a distinctive name, logo, symbol, design, or combination of these elements that differentiate a product from its competitors. The purpose of branding is to establish a strong and memorable presence in the market, build brand loyalty, and communicate the value and qualities of the product.

2. Term Branding actually came from cattle grazing:
The term "branding" originated from the practice of cattle grazing. In the past, ranchers would use a hot iron stamp or "brand" to mark their cattle with a unique symbol or design. This was done to distinguish their livestock from others and to prove ownership. Over time, the term "branding" was adopted in the business world to describe the process of creating a unique identity for products and services.

The practice of branding cattle dates back thousands of years and has been used by various cultures around the world. It was a practical way for ranchers to identify their cattle and prevent theft or disputes over ownership. The branding mark, usually a combination of letters, numbers, or symbols, would be permanently burnt onto the animal's skin using a heated iron. This ensured that the mark remained visible even as the animal grew and its fur or skin changed.

The concept of branding in marketing takes inspiration from this practice of cattle branding. It involves creating a distinct mark or identity for a product that sets it apart from competitors and helps consumers recognize and recall the brand. Just as a cattle brand serves as a visual representation of a rancher's ownership, a brand logo or symbol acts as a visual representation of a company's products or services.

In conclusion, both statements are correct. Branding does involve stamping a product with a particular name or sign, and the term "branding" did originate from the practice of cattle grazing.