I would take it to mean that !
Perhaps explain how these activities are chosen, at staff meetings, with parents, by looking at what play things/ activity resources you have available and seeing how they can be used in different ways to challenge and extend the children. As an example, Tea towels.. they can be used to dry up dishes, tucked in a waistband as chase tails, memory game covers, picnic cloths, sheets & blanets, flying carpets (not very good ones though
) head cloths, capes, cloaks, flags, a giants handkerchief ~ by allowing the children to access and explore these activites they'll discover many more things about them, take risks and face challenges ..
I'd understand the second part to be taking into account all cultural aspects of the children, their famillies, friends, the wider community and anything else they may experience culturally and then together, provide activities that are developmentally appropriate, stimulating and offer the opportunity to explore them all equally.
If anyone has completed this unit and can suggest more .. please do ..