Delegated administrators in Salesforce are designated users who are given limited administrative privileges to assist system administrators without having full access to all administrative functions. The two functions they can typically perform, which align with the permissions available to delegated admins, are:

Set up users and password management:

Delegated administrators can create and manage user accounts, which includes setting up new users, resetting passwords, and updating user details.

This is particularly useful for helping with user management tasks without providing full system administrator access.

Configure updates to sharing rules:

Delegated administrators can manage sharing rules within their specific groups or roles, which helps control access to records based on criteria set within the organization.

This level of access allows them to modify sharing rules to ensure appropriate data access without requiring full administrative control over all settings.

The other options listed are not within the scope of delegated administrator capabilities:

Manage custom objects and customize nearly every aspect: Delegated administrators do not have the ability to manage custom objects or perform extensive customization. These functions are reserved for system administrators with broader privileges.

Make updates to permission set configurations: Delegated administrators cannot create or modify permission sets. This is also restricted to full administrators, as it involves controlling access at a granular level across the org.

By utilizing delegated administrators for user and sharing rule management, organizations can maintain security and control while also sharing some administrative workload.