Software testing

Is this a test question? The part about placing a star mark on the left side of the best tool kind of gives you away.

Functional testing has to do with whether or not the application works as intended and does what it is supposed to do. This is typically done manually though there are automation available depending on the kind of application it is. Performance testing has to do with how quickly the application responds, how many users it can handle, how many resources it uses, and how well it scales.

Functional testing is to test functionality of software, whether it's working(functioning) as expected or not.

Performance testing test how much load a software can tolerate.

Yes, there are automation tools available for these purpose.

For functional testing- QTP, Winrunner
For Performance- LoadRunner