In the context of the two-way table provided, the variables are categorized based on the two factors being analyzed: the grade level of the students (7th and 8th grade) and the type of instrument they play (flute or clarinet).
Based on this analysis, the correct description is:
grade number and type of instrument.
This choice indicates that one variable is the grade level (7th or 8th) and the other variable is the type of instrument (flute or clarinet).