IRA or 529?

I'm looking into opening a fund for my 2yr old daughter so she can go/afford college when her time comes and I'm little lost, since I don't know anything about investment plans and whatnot.

Someone was telling my mother in-law to open an IRA account but as I Google and read doesn't seem to be the best choice and found out about the 529, which sounds like just what I need but was wondering if anyone has any pointers, tips or suggestions for better options?

Thanks in advance.