Explanation

Box 1: Parquet
Parquet stores data in columns, while Avro stores data in a row-based format. By their very nature, column-oriented data stores are optimized for read-heavy analytical workloads, while row-based databases are best for write-heavy transactional workloads.
Box 2: Avro
An Avro schema is created using JSON format.
AVRO supports timestamps.
Note: Azure Data Factory supports the following file formats (not GZip or TXT).
Avro format
Binary format
Delimited text format
Excel format
JSON format
ORC format
Parquet format
XML format
Reference:
https://www.datanami.com/2018/05/16/big-data-file-formats-demystified