Read the paragraph and answer the questions that follow.

Literary criticism does not necessarily have to choose between textual or verbal and contextual study. The distinction between the two types of linguistic meaning is seen at two levels, formal and textual. Formal meaning in poetry is the level at which stylistic patterns occur but these are not restricted to mere form. Panini discusses, in a few sutras scattered over his works, the influence of the concept of language in various spheres of suffixes, primary and secondary derivatives and compounds. Poetics is also indebted to grammar for the terms 'Jati' (genus), 'Kriya' (action), 'Guna' (quality) and 'Dravya' (individual/substance) which it uses in connection with certain poetic figures or while dealing with the expressive function of words. Literary criticism, in the Sanskrit tradition, has been understood to be a sastra by which is meant any systematic, well-formulated body of knowledge. A 'sastraic' exposition is supposed to involve inquiry into the nature of substance, nature of language and the validity of critical statements. Thus, a basic understanding of the grammatical and philosophical issues is a prerequisite for the understanding of critical questions.