HOTSPOT You are creating Power Bl visualizations. You need to display the visuals where a user can perform each function. Which solution should you use? To answer, select the appropriate option in the answer area. 
Spot on for both. For high-level KPIs, only Dashboards give that at-a-glance view, and actual drilldown just isn't possible there-it happens in Reports. I think that's what the exam expects too, but not 100% if there's a new feature I'm missing. Agree?
Requirement 1 is definitely Power BI Dashboards since those are designed for top-level KPI overviews. For drill down (Requirement 2), I don't think dashboards let you actually interact with visuals that way, so it's Power BI Reports. Some people confuse dashboard links, but real drilldown happens inside reports.
Requirement 1 is Power BI Dashboards, and Requirement 2 is Power BI Reports. I saw something similar on a practice exam, pretty sure that's what they want here.