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Just remember the intent of both--to prevent a cheap DP.
If the IFF is in effect (not just "conditions exist"), since the B/R is out, the runners are not forced to advance on the batted ball and a cheap DP is not possible, so an intentional drop stays live. If, even though the conditions exist, the IFF is not in effect, then the B/R is not out, the runners are forced to advance and a cheap DP is possible, so the ball is declared dead.
The question is just bad. It asks you to make a decision based on two conditions that are mutually exclusive, but are presented as though both are true.
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