Super-heated steam refers to steam that has been heated beyond its boiling point, at which point it no longer exists as a liquid. Normally, water boils at 100°C under standard atmospheric pressure, but steam produced at a temperature higher than this is termed super-heated.
When steam is heated further at a constant pressure, it doesn't condense back into liquid water because the temperature is above its boiling point, so it is called superheated steam. This steam has higher energy compared to saturated steam (steam at its boiling point), and it can be used for various applications like driving turbines and other mechanical processes.
Thus, the correct answer is option (2): Super-heated steam is produced above the boiling point.