I installed RHEL7 using vmware and at some point two boot options appeared, one of them appears to be a rescue option (second in the image). What is this option and how can I remove it? Should it be removed?
The second GRUB option is to boot in rescue mode, when something has gone haywire. To remove it:
1) Remove the kernel image file
rm -rf /boot/vmlinuz-0-rescue-6b78...
2) Remove the boot option from GRUB
(obviously, complete the commands with the correct number)
You can safely remove this entry if you wish, but you could also just set up GRUB so it boots automatically to the first entry after a shorter delay (default is 5 secs).