Hey Garima,
From learning point of view, Hadoop 1.2.1 would be perfectly fine. I have added the Setup hadoop 2 course because there were many who were struggling with Hadoop 2 installation and you can use it anytime to install Hadoop 2 on a 32 bit VM instance. It would be easy for you.
There is no difference in programming when you code on Hadoop 1.2.1 or Hadoop 2.x.x. The same programs run on both the versions of Hadoop. It is just the way the program gets executed is a little different in Hadoop 2 and that all happens behind the scene and you would not be aware of it. That difference in framework is covered in details in section 7 of the course
"Hadoop Certification Made Easy" .
So basically if you are with Hadoop 1.2.1, be with it thorough out the course and if you are starting out, you can try Hadoop 2 but that would need to be installed on 32 bit machine as it has one of its library:- libhadoop.so.1.0.0 which is not compliant with 64 bit architecture and hence creates the nuisance. Basically, there is a work around that as well to recompile that on 64 bit machine, but that is that much additional overhead.
Hope this helps. Please do let me know if you may need my help!
Best,
Nitesh