The stored procedure will be more effective, definitely. This will also reduce the amount of code you have to write on the server side. The disadvantage is that now you need to either know how to write SQL yourself, or have a database administrator with whom you work, who can write it for you.
As for your other question, this will be 1 saved proc that inserts into both tables.
Another thing to keep in mind: IF you have to do a lot of things like this throughout your code, it might be worth learning a good ORM and doing it all in code (option 2). But if this is a kind of one-time thing that you only do in a few places, the stored process will be more reasonable.
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