Both statements are correct regarding the use of nanotechnology in the health sector. Targeted drug delivery utilizes nanoparticles to transport therapeutic agents directly to diseased cells, minimizing side effects and enhancing treatment efficacy. Additionally, nanotechnology plays a significant role in gene therapy by facilitating the delivery of genetic material into cells with high precision, thus improving the potential for targeted treatment of genetic disorders. This intersection of nanotechnology with medicine exemplifies advancements in biomedical engineering that align with contemporary healthcare goals, making it relevant for UPSC Prelims GS Paper I.