The above answers all hit it, its assigning the same values to two objects. The reason why might not be so clear. The second instance is a bit easier to explain. Every member of jQuery.fn is attached to the return value of $(). So if you did the following..
jQuery.fn.myFunc = function() { return 'blah'; }
You would get
$('#blah').myFunc(); // returns 'blah'
Extend is a helper function that adding provided object members to the current object. jQuery uses these methods to build up its static (jQuery.getJSON) and 'dynamic' ( $('.class').load() ) methods. This gives a nice advantage of code separation during development. For example, ajax.js uses jQuery.fn.extend to add its methods of load, serialize, getScript, etc and uses jQuery.extend to add methods like jQuery.ajax