Stratum indicates how many steps a time source is from an authoritative reference clock.

StratumMeaning
0Reference clock such as GPS or an atomic clock.
1Directly connected to a Stratum 0 reference.
2Synchronises with a Stratum 1 server.
3+Synchronises further down the hierarchy.

Active Directory

In a typical forest the forest-root PDC Emulator synchronises with an external source. Other domain controllers synchronise through the domain hierarchy, followed by domain members.

GPS
 │
Stratum 1
 │
Forest Root PDC Emulator
 │
Other DCs
 │
Domain Members

Microsoft reference: Windows Time Service documentation.