This is a Great Debate, and there is really No Right or Wrong, either term is correct, it all depends what geographic location that yoru family is from in America or the Old Country of Italia. Whether your family is from Napoli, Sicily, Calabria, or live in New York, Chicago, Boston, or Philly, the most important thing of all is not what you call it, Sauce or Gravy, but how the product taste, it has to be beyond good.
Amother factor that varies, is what you and your family put into your Sauce. The most popular is a Sauce (Gravy) made with Sauasge, Meatballs, and Braciole (Braciola). Some families, like mine love to put Ribs in their Sauce, some put Pig Skin Braciole, some Lamb or Pork Neck, and some families even put chicken into their Gravy, which I myself do every now and then, especially if the local grocerry store has Chicken Thighs on sale. And speaking of sales, we always stock up on Maccheroni (Pasta) and Tomatoes whenever they are on sale as well.
For recipes on How to Make SUNDAY SAUCE alla CLEMENZA from the Francis Ford Coppola film The Godfather , how to make Dolly Sinatra Meatballs and Spaghetti Sauce, the Bellino Family Sunday Sauce, and Mamma DiMaggio's Sunday Gravy, get a copy of Daniel Bellino "Z" sSUNDAY SAUCE , When Italian-Americans Cook.