What is the difference between the read$()$ and readlines$()$ methods?

Question $66$ options:

read$()$ is used for binary files, readlines$()$ for text files.

read$()$ reads the entire file, readlines$()$ reads only the first line.

There is no difference, both methods perform the same action.

read$()$ returns a string, readlines$()$ returns a list of lines.