Blender question.

On their features page they have a detailed list of what it can do.

In short, it is 1 and 2. But not a game engine. You use Blender to create content for a game engine, or whatever else you need content for.

You can model, animate and render. There's a mode entitled "game engine" but I've no idea what that's actually for (it uses Python I think), but needless to say it's not for making whole games. You'd make the game with a language like C++; Blender is there to create 3d models or pre-rendered scenery (and it's pretty damn good at it too ;) ). It's basically an open-source competitor for Maya and 3d Max.

ok i got your point thanks

You are quite wrong...blender includes a complete game engine (graphics + physics + audio) wich is scriptable with for making complex games or you can use it without writing a line of code (for simple things..).
I tried it and i found it quite powerful! You can have a look in this forum:

http://blenderartists.org/forum/forumdisplay.php?f=12