What is a group of animals that have similar characteristics and pass those characteristics to their offspring called?

The correct answer is "Breed." A breed refers specifically to a group of domesticated animals that, through selective breeding and genetic similarities, exhibit particular traits and characteristics that are passed down to their offspring. Breeds are often created and maintained by humans to ensure specific desired traits, such as size, color, temperament, or productivity, making them distinct within a species.

Species, while also referring to a group of organisms that can reproduce and produce viable offspring, encompasses a broader range of genetic diversity than a breed. Families are even broader taxonomic categories that group together multiple species based on more extensive common characteristics. Herd refers to a gathering of animals, typically domesticated, that live together; it does not denote a specific group defined by shared genetic traits. Thus, "Breed" is the term that most accurately captures the concept of a distinct group of animals with shared characteristics that are inherited by their offspring.