Step child settlement visa - what appendix???

I'm British, my husband holds ILR since July 2011. we are now in a position to apply to bring his daughter here. he has sole guardianship granted through the courts when he divorced in 2008. we have gathered together all the supporting docuuments. Our big problem is which appendix to complete - appendix 1 or appendix 2.

we will be sending the following docuemnts
VAF4
SUo7
step duaghters TB cert
divorce paper stating my husband is legal guardian and responsible for all bills etc
letter from school where she currently boards
underage citizenship paper showing husband is her guardian
6 months pay slips husband and myself
6 months bank statements showing salary and evidence of money sent overseas
accomodation details - title deeds copy
our marriage certificate
covering letter
mobile phone call log to his daughter

we're terribly confused about what Appendix to complete. any help will be greatly appreciated.

Appreciate your help.

I hope to get the application and all supporting documents sent by courier by the end ofthe week.

Have a good day