dvav imau purusau loke
ksaras caksara eva ca
ksarah sarvani bhutani
kuta-stho ’ksara ucyate
Word for word:
dvau — two; imau — these; purusau — living entities; loke — in the world; ksarah — fallible; ca — and; aksarah — infallible; eva — certainly; ca — and; ksarah — fallible; sarvani — all; bhutani — living entities; kuta-sthah — in oneness; aksarah — infallible; ucyate — is said.
Translation by His Divine Grace A. C. Bhaktivedanta Swami Srila Prabhupada:
There are two classes of beings, the fallible and the infallible. In the material world every living entity is fallible, and in the spiritual world every living entity is called infallible.
Purport by His Divine Grace A. C. Bhaktivedanta Swami Srila Prabhupada:
As already explained, the Lord in His incarnation as Vyasadeva compiled the Vedanta-sutra. Here the Lord is giving, in summary, the contents of the Vedanta-sutra. He says that the living entities, who are innumerable, can be divided into two classes – the fallible and the infallible. The living entities are eternally separated parts and parcels of the Supreme Personality of Godhead. When they are in contact with the material world they are called jiva-bhuta, and the Sanskrit words given here, ksarah sarvani bhutani, mean that they are fallible. Those who are in oneness with the Supreme Personality of Godhead, however, are called infallible. Oneness does not mean that they have no individuality, but that there is no disunity. They are all agreeable to the purpose of the creation. Of course, in the spiritual world there is no such thing as creation, but since the Supreme Personality of Godhead, as stated in the Vedanta-sutra, is the source of all emanations, that conception is explained.
According to the statement of the Supreme Personality of Godhead, Lord Krishna, there are two classes of living entities. The Vedas give evidence of this, so there is no doubt about it. The living entities who are struggling in this world with the mind and ﬁve senses have their material bodies, which are changing. As long as a living entity is conditioned, his body changes due to contact with matter; matter is changing, so the living entity appears to be changing. But in the spiritual world the body is not made of matter; therefore there is no change. In the material world the living entity undergoes six changes – birth, growth, duration, reproduction, then dwindling and vanishing. These are the changes of the material body. But in the spiritual world the body does not change; there is no old age, there is no birth, there is no death. There all exists in oneness. Ksarah sarvani bhutani: any living entity who has come in contact with matter, beginning from the ﬁrst created being, Brahma, down to a small ant, is changing its body; therefore they are all fallible. In the spiritual world, however, they are always liberated in oneness.