Original User: ebowman
Hi Jamal,
Patrick has a great link to the help for this topic.
The transformation is for warping the image within coordinate space and creating a world file. The default method is affine that has scale, skew, rotate. The x and y axis are independent of each other. The 2nd and 3rd order polynomials are more complex calculations for dealing with skew. These methods are used to make the image line up in coordinate space so that world file can be created.
The resample is used for exporting out an georeferenced image to be rectified. The help lists this useful for other programs that cannot read an external world file. I typically don't rectify it but stop after doing the transformation. If you use the what's this button on the resample, it will explain what each of those methods are.
Hope this helps.
Eric