Step 1: Understand the question.
We need the MS Excel option used to put data in ascending or descending order.
Step 2: Meaning of ordering data.
Arranging data from small to large or A to Z, or the reverse, is called sorting.
Step 3: Match the name to the action.
The Sort tool in Excel rearranges rows by the values you choose, such as numbers or names, in the order you pick.
Step 4: Check the Filter option.
Filter only hides rows that do not match a condition. It does not reorder the whole list, so it is not the answer.
Step 5: Check Format and Arrange.
Format changes the look of cells, like colour and font. Arrange is not the standard Excel tool for ordering data values.
Step 6: Conclude.
So the option that arranges data in ascending or descending order is Sort, which is option 2.
\[ \boxed{\text{Sort}} \]