Will this step fit my 2" hitch and my friend's 1.25" hitch?

Yes. This step works on both receiver sizes without needing different hardware or adapters. One step covers both.

Do I need to drill holes in my bumper or hitch frame to install this?

No. It bolts directly into your existing receiver tube—no drilling, welding, or frame modification needed.

Will stainless steel rust if I'm in a coastal area or around salt?

Stainless resists corrosion far better than steel or powder-coated surfaces, but salt spray exposure is still harsh. Rinse periodically to extend life, especially in high-salt environments.