1.She asked what was in your hand.
2.She asked what that was in your hand.
Are they both correct and the same meaning?
Both are correct. 1 is more likely when she can't see what's in my hand. 2 is more likely when she can see what's in my hand, but she doesn't know what it is, that is, she has trouble identifying it.
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Both are correct.
1 is more likely when she can't see what's in my hand.
2 is more likely when she can see what's in my hand, but she doesn't know what it is, that is, she has trouble identifying it.
CJ