The correct answer is option 1. Merino sheep.

Merino sheep are widely recognized for producing some of the finest and softest wool among all sheep breeds. The quality of their wool is highly prized in the textile industry. Here are some key reasons why Merino wool is considered superior:

1. Fineness of Fibers:  Merino wool fibers are exceptionally fine, with a smaller diameter compared to the wool from other sheep breeds. This fine diameter contributes to the softness and smooth texture of Merino wool garments.

2. Softness and Comfort: The fine fibers make Merino wool incredibly soft and comfortable against the skin. This characteristic makes Merino wool suitable for a wide range of clothing, including base layers, socks, and other garments that come in direct contact with the body.

3. Warmth and Insulation:  Despite its fineness, Merino wool provides excellent insulation, helping to regulate body temperature. It has the ability to trap and release body heat, making it a popular choice for both warm and cold weather conditions.

4. Moisture Management:  Merino wool has natural wicking properties, meaning it can absorb and release moisture efficiently. This helps keep the wearer dry by moving sweat away from the body, making Merino wool garments comfortable in various climates.

5. Breathability:  The structure of Merino wool allows for good breathability, preventing overheating and ensuring a comfortable wearing experience.

6. Versatility: Merino wool is versatile and can be used to create a variety of products, from fine clothing to outdoor gear. The high quality of Merino wool makes it a sought-after material for luxury and performance textiles.

Merino sheep are primarily raised for their wool, and they are well-adapted to various climates. The breed originated in Spain but is now found in many parts of the world. The selective breeding of Merino sheep has been carried out over centuries to enhance the quality of their wool fibers, making them one of the premium choices for high-quality wool.