Besides all the great info shared already...
Factory clearcoats are thin. Feel a post-it note between your thumb and index finger - your clear coat is thinner than this.
- Sanding removes paint.
- Compounding removes paint.
- Polishing removes a "little" paint.
Chances are good, if you attempt to sand and buff you're going to see the color of the basecoat on your buffing pad. That's a real bad sign.
If you plan on keeping the car and are willing to pay to have the hood re-painted. First go get some estimates so you know what you're getting into - and THEN try to sand and buff. If you are successful - good for you. If you buff through the clear - well you knew what you were getting into and take her to the body shop for a repaint.
Sanding paint is an art form, a skill and a technique. It can be mastered but just remember - most sanding, in fact about 95% of all "wetsanding" is done to repaints after collision work or custom paint jobs. It's not done for fun on factory paint.
Hope the above helps...