Let $f$ be any function which assigns to each permutation an integer number, and for any two permutations $\sigma$ and $\tau$, $f(\sigma \tau) = f(\sigma)f(\tau)$. Then, $f$ is zero, or identically 1, or it is the sign function.
Solution
After reading the answer given by Hagen, I am writing the following which is what I got from his answer.
I would like to know if it is correct or not.
First, as Hagen showed, if $f(\sigma)$ is zero for any permutation, then it is zero function. So, assume that $f(\sigma)\neq 0$ for every $\sigma$.
Let $I$ be the identical permutation, and $\sigma_{ij}$ be the permutation which replaces $i$ with $j$ and vice versa. Then, we have
1 - $f(I) = 1$ (as Hagen showed).
2 - $\sigma^2_{ij}=I$, and so $f(\sigma_{ij}) = 1$ or $-1$ as $f(\sigma_{ij})$ is an integer number.
3 - Every permutation can be constructed as a sequence of $\sigma_{ij}$.
4 - If $f(\sigma_{ij}) = 1$, then for every permutation $\sigma$, $f(\sigma)$ is a multiplication of a number of $1$, and so is equal to $1$, and so $f$ is identically $1$.
5 - If $f(\sigma_{ij}) = -1$, then for every permutation $\sigma$, $f(\sigma)$ is $(-1)^m$, where $m$ is the number of simple permutations $\sigma_{ij}$ to construct $\sigma$, and therefore it is the $sgn$ function.
So, we are done.