What does the statement mean?

From here

ref and out parameters in C# and cannot be marked as variant.

1) Does it mean that the following can not be done.

public class SomeClass<R, A>: IVariant<R, A>
{
    public virtual R DoSomething( ref A args )
    {
        return null;
    }
}

2) Or does it mean I cannot have the following.

public delegate R Reader<out R, in A>(A arg, string s);

public static void AssignReadFromPeonMethodToDelegate(ref Reader<object, Peon> pReader)
{
    pReader = ReadFromPeon;
}

static object ReadFromPeon(Peon p, string propertyName)
    {
        return p.GetType().GetField(propertyName).GetValue(p);
    }

static Reader<object, Peon> pReader;

static void Main(string[] args)
    {
        AssignReadFromPeonMethodToDelegate(ref pReader);
        bCanReadWrite = (bool)pReader(peon, "CanReadWrite");

        Console.WriteLine("Press any key to quit...");
        Console.ReadKey();
    }

I tried (2) and it worked.