Final answer:
The codec used for creating preview files for a sequence specifies the compression algorithm and file format used for creating those files.
Step-by-step explanation:
The codec used for creating preview files for a sequence specifies the compression algorithm and file format used for creating those files. A codec, short for coding/decoding, is a software or hardware tool that compresses and decompresses digital media files. In the case of creating preview files for a sequence, the codec specifies how the files are compressed to reduce their size while maintaining an acceptable level of quality.
The compression algorithm determines how the data is encoded and decoded, resulting in smaller file sizes. There are various compression algorithms available, such as H.264 or MPEG-4, that are commonly used for creating preview files. The file format refers to the structure and organization of the data within the file. Common file formats for preview files include MP4, AVI, or MOV.
Therefore, the correct answer to the question is option 1) Compression algorithm used for creating preview files and option 2) File format used for creating preview files.