In addition to body hair on a human, "pelo" can also mean fur. "Cabello," though, means hair on a person's head, specifically.
You can call head hair "pelo," but it's more casual or slangy than "cabello." You would never call a dog's fur "cabello," though.
ow yea the one I got right was hand (and looking at the answers the other way around I think I would ve gotten 12)