Number 2 is a slur used to describe Blacks in a derogatory way. Usually when checking off racial or ethnic background African-American is the second choice.
The word Number 2 is a racial slur that has been used historically to degrade and dehumanize blacks. The word is still used by some people for this purpose, and it is seen as offensive and hurtful to blacks. If you are unsure about whether or not it is appropriate to use the word Number 2, it is best to err on the side of caution and avoid using it in any situation.