Identify the broad all-India aggregative classification, and the regional or local sub-classification that explains the nature of caste system in India.

Varna, Jati

The correct answer is Option (2) - Varna, Jati

Tthe 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. 

Jati represents the regional or local sub-classification, while Varna represents the broad all-India aggregative classification of the caste system in India.