Sorting data based on drop down lists.

Is it possible to have a drop down list on Sheet 1 which will filter data on Sheet 2 then display the filtered data in a different drop down list on Sheet 1?

Sheet 2 contains 398 column's and 15 Rows made up of University Course Data (eg; Course Name, Level, Course Code etc). The reason for this is Sheet 1 is to work as a User Interface and will display information on the course selected. There are two drop down lists on Sheet 1. The first drop down list which has the following listed (Undergrad, Postgrad,PHD,Honours) is to be the list that will filter the data on sheet 2.

If Undergrad is selected the second drop down list on Sheet 1 will only display the filtered list from Sheet 2 which will be all the Undergrad courses only. This will reduce the courses displayed in the Course Name drop down list.