Functions for Drop Down menus

Hello

I am wondering if the following is possible and if it is, if you can help point me in the right direction:

I want to have a spread sheet where a user will pick an option from a drop down list, then based on that option choice, have a different cell populate with a specifc drop down menu.

Example:

Cell A1 has a drop down with three choices (1,2,3)
User selects option 1
Cell B1 will now have a drop down with options A,B,C
However:
If user selects option 2 from A1
Cell B1 will now have a drop down menu with options X,Y,Z

Is this possible? What is the type of function / formula called to make this happen?

Thanks!

Hi!
Thank you very much that artical made sense and getting to see it helped alot.

I am all set

Thanks