The 1st option allows you to toggle the camera between 'auto' and 'manual' mode. In auto mode the camera will attempt to automatically rotate so that your character is always visible.
The 2nd option allows you to toggle between using two mouse buttons to control the game, or just one. In single button mode the menu will always appear when you click on more than one item. Some people find this easier, and it's also handy if your mouse only has one button!
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