What is meant by the hierarchy of courts? Which of the following is correct?

The hierarchy of the courts refers to the level of importance a court holds within the court system, i.e. inferior courts must follow decisions of superior courtsThe hierarchy of the courts refers to the courts in different states; Federal Courts have a greater importance than state courtsThe hierarchy of courts means that any inferior court must follow a superior court, irrespective of what state that superior court is situated inThe hierarchy of courts refers to which courts can hear civil or criminal matters, only superior courts can hear criminal matters