Some searching on google:
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Think the authentication option will stop the iphone working properly with out an official cable from apple, remember the newer ones since 5 have a authenticator chip in the official adapters, so I presume with that enabled it may stop 5's onward from using it with non official cable. might be wrong though, but it sounds like that to me. Or its the total opposite and it enables the bypass of an official cable and the chip is connected to port itself  who knows.
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The other option I think allows app switching in the idrive, so if you are in Tunein radio, you can switch to Spotify without having to physically do it on the phone itself.
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